Research On The Motives And Consequences Of Active Delisting Of Listed Companies

The withdrawal mechanism of the capital market is the basis for the healthy development of the capital market.In foreign markets where the withdrawal mechanism is relatively mature,it is normal to have both withdrawals and advances.There are many delisting methods for listed companies,which can be roughly summarized as active delisting and passive delisting.Because companies have many interests involved in forced or active delisting from the capital market,and the reasons and consequences for withdrawing from the capital market are different,delisting faces many problems.What is the motivation for the company to voluntarily withdraw from the capital market,and what are the consequences after the delisting? These are issues worthy of our consideration and research.This paper first summarizes the domestic and foreign literature related to active delisting,introduces the delisting related concepts,combs the evolution of delisting system of listed companies in China,and outlines the theoretical basis of this study.Secondly,the basic information of Aerospace Communication Holding Group Co.,Ltd.is introduced,including the background and process of delisting.After that,it makes a specific analysis of the aerospace communication case.First,it analyzes the external causes of delisting from the international environment,legal policies and industry conditions,and then it analyzes the basic operating conditions of listed companies and the internal causes of delisting from financial conditions,value evaluation of listed companies and other aspects.Finally,it is found that the main reason is the self operation of listed companies that take the initiative to delist.At the same time,the study found that,at present,enterprises are still faced with such practical problems as the delisting procedure can not be strictly implemented,the implementation standard is not clear,the market players can not survive the fittest,there is still a lot of operational space for enterprises to avoid delisting,and the investor protection is relatively lacking.Through the analysis of active delisting cases,and through international research experience and China’s domestic research,this paper analyzes the consequences of delisting of listed companies on enterprises and its harm to investors.At the same time,study the impact on external securities markets and regulators.Finally,it puts forward relevant suggestions such as the boundary between active delisting and compulsory delisting,the establishment of shareholder class action system,the improvement of multiple delisting mechanisms,and the strengthening of media supervision functions to further improve the enterprise’s active delisting system.