The Determinants of the Delisting Phenomenon in Pakistan

Abstract

The listing gap is a major threat to the Pakistan Stock Exchange. This study compares corporations that voluntarily left the Pakistan Stock Exchange (PSX) between 2010 and 2023 and their counterparts' survival firms from the PSX. The similarly sized and industry-focused survived listed enterprises are analysed. The research finds that financial health and market dynamics are important factors affecting the choice to delist. The results show that several financial and market factors determine delisting patterns. Using a Cox hazard model, the research examines the time-to-delisting and finds factors that greatly affect the chance of delisting. EPS, Size, and Fixed assets turnover are some major factors behind the delisting, are found in the analysis