Monday, December 20, 2004

Delistings soared in '03, study says

The number of companies that delisted common shares from exchanges nearly tripled in 2003, according to a study that suggests many companies did so to avoid increased outside scrutiny.

About 198 firms delisted their shares from exchanges, or "went dark," in 2003, up from 67 in 2002, according to the study co-authored by professors from the Wharton School of the University of Pennsylvania and the University of Maryland's Robert H. Smith School of Business. The study was summarized in a Wharton newsletter.

The study reported that most of the companies that delisted their shares say they did so to escape the steep costs associated with regulatory filings. Many smaller companies estimated the cost of complying with Sarbanes-Oxley was as high as $500,000.

Delistings soared in '03, study says

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