Understanding Delisting: Implications and Strategies for Public Companies

Introduction

Delisting, the process through which a publicly traded company’s shares are removed from a stock exchange, can significantly impact the firm, its shareholders, and the broader market. This academic paper aims to explore the implications of delisting for public companies and the strategies they may employ to mitigate adverse effects. Delisting can occur for various reasons, including failure to meet exchange listing requirements, voluntary withdrawal, or regulatory decisions. By understanding the ramifications of delisting and analyzing effective strategies for companies facing this situation, stakeholders can better navigate the challenges associated with this critical financial event.

Main Body

Delisting can have profound consequences for public companies, often leading to decreased liquidity, diminished company reputation, and potential financial distress. One immediate effect of delisting is the impact on share liquidity. When a