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- Post-Rule 12h-6 Firms delisted and then deregistered under the Rule 12h-6 (became effective on March 21, 2007). Changed its headquarters to U.S. Firms that moved their headquarters to U.S. and are no longer considered as foreign. Going private Firms that went private. Moved to OTCBB Firms that delisted from U.S. exchange markets and moved to OTCBB. Moved to OTC Firms that delisted from U.S. exchange markets and moved to another OTC. APPENDIX 1.C – Groups of Cross-delisted firms GROUP REASON INVOLUNTARY Involuntary Firms that declared bankruptcy or whose listings were removed by U.S. markets -NYSE or NASDAQ - for not meet the imposed requirements. MERGERS & ACQUISITIONS M&A Firms delisted following a merger or acquisition process. VOLUNTARY Pre-Rule 12h-6 Firms delisted before the passage of the Rule 12h-6 (deregistration under the Rule 12g-4).
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- Post-Rule 12h-6 Firms delisted under the Rule 12h-6 (became effective on March 21, 2007). Other reasons Firms that moved their headquarters to U.S., went private or moved to OTCBB or to another OTC. TABLE 1: Sample Description
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- Worldscope Treat Binary variable that takes one if a firm cross-delists at some point over 2000-2012, i.e., if a firm is included in the treatment group, and zero otherwise.
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- ZINGALES, L. (2007) Is the U.S. capital market losing its competitive edge? ECGI -Finance Working Paper No. 192/2007, University of Chicago. APPENDIX A – Definitions and Sources of the variables VARIABLE DEFINITION SOURCE Firm-level Book-to-Market The book value of equity divided by the market value of equity. Worldscope and Datastream Buy-and-hold abnormal returns (BHARs) Monthly compounded return of a one-year buy-and-hold investment in the stocks of treatment firms less monthly compounded return of a one-year buy-and-hold investment in the stocks of the corresponding matched firms.
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