TABLE OF CONTENTS LIST OF TABLE AND FIGURE Figure and Table Figure Figure Figure Figure Figure Figure Table Table Table Table Table Table Table LIST OF ABBREVIATIONS Abbreviation s Full phrases SSC State Securities Commission of Vietnam HOSE Ho Chi Minh Stock Exchange HNX Hanoi Stock Exchange UPCOM Unlisted Public Companies Stock Exchange M&A Merger and Acquisition IPO Initial Public Offering P/E Price to Earnings Ratio P/B Price to Book ratio ROA Return on Assets ROE Return on Equity VND Vietnam Dong NYSE New York Stock Exchange AMEX American Stock Exchange NASDAQ National Association of Securities Dealers Automated Quotation System ABSTRACT The number of delisting firms in Vietnam stock market has dramatically increased in recent year There have been numerous studies in the world concerned with the determinants for delisting and the effect of delisting on the market in general, the company itself and the investors The main objective of this research is to identify the factors affecting delisting probability of companies listed in three Vietnam stock exchanges: HOSE, HNX and UPCOM over the period of 2009 – 7/2014 More specifically, the research is concerned with these variables that are indicators of firm’s financial ratios and managerial characteristics Logistic regression model was used to distinguish the difference between delisted and listed firms After running the model, major findings revealed: (1) the higher Net Income, the greater Total Assets and the lower Debt ratio with the renting of BIG4 as auditor, the less likely a firm will delisted; (2) the smaller the number of Board of Directors, the few number of large shareholders and the lower number of Master Degree and female member in Board of Management, the greater the likelihood the firm will go private Also, the finding showed that if the shareholders in companies are foreigners and state, the firms will less likely delisted The results found in this paper have numerous important implications for establishing stock markets in emerging economies Chapter I: INTRODUCTION 1.1 Rationale: For more than 14 years of development, Vietnam stock market has achieved some impressive milestones: To begin with, the organizational structure of the market has been more and more completed with three Stock Exchanges Ho Chi Minh Stock Exchange (HOSE) operated on July 28, 2000, while Hanoi Stock Exchange (HNX) officially launched on March 08, 2005 and Unlisted Public Company Market (UPCOM) was opened on June 24, 2009; Another achievement is that there has been a growth in number of listed companies in Vietnam stock market, including both large-cap and small-cap enterprises Until July 31, 2014, there are 304 stocks listed in HOSE; 359 stocks in HNX with total market capitalization of more than VND 89,000 billion Meanwhile, 151 public companies register transactions in UPCOM with total transaction value of VND 21.326 billion; Additionally, the total market capitalization has been developing continuously Until July 25, 2014, the total capitalization of Vietnam’s stock market is VND 1,100,000 billion, comprising Ho Chi Minh Stock Exchange (89%) and Hanoi Stock Exchange (11%) In particular, this figure of HOSE reached VND 979,000 billion, which is VND 136,895 billion higher than that of the previous year Whilst, value of capitalization in HNX was VND 121,000 billion, increasing by VND 14,130 billion compared to 2013 Therefore, the stock market has become an important channel of mobilizing capital for enterprises as well as an attractive investment channel for investors Until July 25, 2014, the total capital of the Vietnam stock market was VND 1,700,000 billion, which is successfully mobilized in 14 years of operation In particular, Government mobilized about VND 1,000,000 billion through government bonds; businesses did approximatelyVND 700,000 billion through the stock market during this period 1,300,000 accounts of investors including 1,282,831 domestic investors, 17169 foreign investors were opened on Vietnam’s stock market till July 20, 2014 On the other hand, Vietnam Stock Market has to face up with a serious phenomenon that can hinder and threaten the sustainable development of the market This is delisting problem in three Stock Exchanges: HOSE, HNX and HOSE The number of delisting companies in these three Stock Exchanges is increasing annually From 2009 – 7/2014, there are 161 delisting companies that includes 69 voluntary delisting companies and 92 involuntary delisting companies This situation affected adversely to stock market, investors and the company itself Specifically, the delisting degrades the image of the companies in the eyes of investors, customers and partners Moreover, due to no completed research on delisting, State Security Commission (SSC) as well as Stock Exchanges has inactively responded to delisting proposal Since 2009, although numbers of delisting companies have increased significantly, there was no adjustment from management body to restrain the negative impacts of delisting and delisting phenomenon In fact, the phenomenon of delisting is to a certain extent a common occurrence in developed economies as well However, the difference is that there has been a myriad of worldwide researches on delisting problem In contrast, there is no academic research paper that evaluates the determinants of delisting risk and its consequences on Vietnam’s stock market Therefore, it is necessary to have research papers to investigate the factors affecting delisting risk as well as to assess consequences and influences of delisting issue This research will also help SSC and Stock Exchanges actively response to delisting cases as well as reduce the number of potential delisting firms From these above analyses, “Empirical research on factors affecting probability of delisting on Vietnam’s Stock Market” is new research topic, valuable and practical to solve the problem of delisting on Vietnam’s Stock Market 1.2 Research objectives and scope: Our empirical research implemented to analyze performance of each enterprise at the end of the year before delisting event in order to identify the determinants of delisting probability Also, we found both subjective and objective reasons which have significant influence on both voluntary and involuntary delisting of enterprises on Vietnam’s stock market All these objectives are carried out towards limiting and reducing enterprises’ probability of delisting so that we reach the final goal of helping firms to balance, control and maintain their positive performance on the stock market We choose to localize our research on delisted enterprises of three Stock Exchanges: Ho Chi Minh Stock Exchange (HOSE), Hanoi Stock Exchange (HNX) and Unlisted Public Company Market (UPCOM) as representatives of Vietnam’s Stock Exchanges until July 31, 2014 161 delisted enterprises and 40 biggest capitalized companies were selected to make a comparison For the former, all data is collected at the end of the year before delisting event, whereas database of the latter was taken in 2013 Both voluntary and involuntary delisting were studied based on two major indicators, namely financial ratios and corporate governance 1.3 Research questions: There are three questions that this research is going to exploit Whichfactors affect delisting probability on Vietnam’s stock market? Whichfactors affectthe probability of voluntary delistingon Vietnam’s stock market? What factors affect the probability of involuntary delisting on Vietnam’s stock market? 1.4 Research methodology 1.4.1 Sample The research team first collects the population of all delisted firms on Vietnam’s stock market between 2009 and July 2014 The data is completely secondary, which is mainly taken from companies’ financial statements and annual report as well as from some journals and newspapers The delisted firms are classified in two big categories: voluntary delisting and involuntary delisting firms Then, based on specific reasons for delisting, delisted firms are divided into some kinds of sub-categories From firm’s financial statements and annual report, the research team extracts the data into financial indicators and managerial characteristics to establish assessment criteria for delisting 1.4.2 Methodology Quantitative research methodology is used effectively to analyze the data As one of the most popular model when researching on delisting phenomenon, logistic regression model is chosen to distinguish the delisted and listed firms based on management criteria and financial ratiosin order to determine the factors affecting probability of delisting in Vietnam 1.5 Research Structure The research is divided into main parts together with tables, figures and appendix Chapter 1: Introduction This part provides the information about rationale of the research, research objectives and scope, research questions and research methodology This chapter also contains the research structure to help readers have big picture about the research Chapter 2: Literature review This chapter gives information about previous researches in the past that will be the knowledge based for the research Based on this part, the research team and the readers can make some comparisons to see the differences between delisting in Vietnam Stock Market and delisting in other countries in the world Chapter 3: Overview of Vietnam stock market and its delisting phenomenon in recent years This chapter contains two big parts that includes Vietnam Stock Market Overview and Delisting phenomenon in Vietnam In Vietnam Stock Market Overview, it focuses on analyzing listing requirements and delisting requirements in HNX, HOSE and UPCOM Regard to delisting phenomenon, the research studies about features of delisting in HNX and HOSE to figure out delisting characteristics in these stock exchanges Chapter 4: Research methodology This section provides the information about research data including objects, scope, and research methodology and research model Chapter 5: Findings In this part, research team analyzes the descriptive statistics and the model that is applied in the research Chapter 6: Recommendations and conclusions From the findings in chapter 5, the research team makes conclusion about delisting on Vietnam’s stock market and some recommendations for relevant parties to have quick responses and actively encounter with this issue Chapter II: LITERATURE REVIEW The decision to go public is a popular topic of corporate finance research paper The reverse phenomenon – delisting – is less studied despite its importance During the past few years, delisting has become a common phenomenon in Vietnamese stock market According to the State Security Commission of Vietnam, since 2009, Vietnamese market has witnessed more than 160 delisting cases in both Hanoi and Ho Chi Minh stock exchange However, there was a handful of research has been conducted about this subject in Vietnam; thus, the recent wave of delisting is still a puzzling issue that needs to be studied on This delisting phenomenon is more interested in at the developed stock markets However, existing research appears to be very fragmented, as scholars tend to concentrate separately on different aspects of delisting While some academics studied on the classification or specific types of delisting (going-private transactions, going-dark strategies, involuntary delisting or termination of a crosslisting), others prefer the determinants, effects on firm’s governance mechanisms and organizational structure of delisting and the relationship between delisting and corporate governance, its stakeholders, performance, reporting system, etc 2.1 Review of theoretical concepts: 2.1.1 Delisting: In order to be publicly exchanged on a stock market, companies wishing to go on-board have to satisfy certain listing requirements set out by the exchange Listing requirements contain minimum share prices, minimum number of shareholders, minimum revenues per year, minimum market capitalization, certain level of financial ratios, and so forth If listing requirements are not met by a company, the exchange that lists the company's stock will probably issue a warning of non-compliance to the company If the company cannot address the continuous 10 Mai Thư (2012), “Hủyniêmyết: ailợi?”, báođiệntửNhịpcầuđầutư, Truycậpngày 25/5/2014 từ http://nhipcaudautu.vn/article.aspx?id=11273-huy-niemyet-ai-loi? Nam Phong (2012), “Rútniêmyết: doanhnghiệptựtạo “vếtđen” chomình”, báođiệntửVietnamnet, truycậpngày 27/5/2014, http://vietnamnet.vn/vn/kinhte/95113/rut-niemyet dn-tu-tao-vet-den-cho-minh.html NgọcThủy (2012), “Hủyniêmyếttựnguyện – khôngdễ”, trangthông tin điệntửcủacôngtychứngkhoánTânViệt, Truycậpngày 27/5/2014 http://finance.tvsi.com.vn/News/2012410/191072/huy-niem-yet-tu-nguyen-khongde.aspx HảiHồ (2013), “Thậntrọngkhimuacổphiếuhủyniêmyết”, báođiệntửCafeF, truycậpngày 27/5/2014, http://cafef.vn/thi-truong-chung-khoan/than-trong-muacp-huy-niem-yet-2013120515290684318ca31.chn PhạmĐình (2012), “Hủyniêmyết: thiệtchocổđôngnhỏ”, báođiệntửNgườilaođộng, Truycậpngày 24/5/2014 từ http://nld.com.vn/kinh-te/huy-niem-yet-thiet-cho-codong-nho-20121028092321109.htm 10 PhươngNhi (2011), “Hủyniêmyết: đedọathịtrườngchứngkhoánViệt Nam”, báođiệntử 24h, truycậpngày 27/5/2014, http://hn.24h.com.vn/tai-chinh-bat-dongsan/huy-niem-yetde-doa-ttck-viet-nam-c161a418471.html 11 ThanhHiên (2013), “Nhiềudoanhnghiệpbấtngờhồisinhsauhủyniêmyết”, báođiệntửCafeF, truycậpngày 27/5/2014, tạihttp://cafef.vn/thi-truong-chungkhoan/nhieu-doanhnghiep-bat-ngo-hoi-sinh-sau-huy-niem-yet201307271825329172ca31.chn 12 TrươngThị Nam Thắng, ĐinhAnhTuấn (2013), “Hủyniêmyếttựnguyệntrênsàngiaodịchchứngkhoán: hiệntượngvàđộngcơcủacácdoanhnghiệp”, tạpchíKinhtếpháttriển, số 193, kỳ 2, tháng 7/2013 81 13 YếnNhi (2014), “Cổphiếuhủyniêmyết: sẽcólànsóngbántháo?”,báođiệntửVnmedia, truycậpngày 27/5/2014, http://vnmedia.vn/VN/kinh-te/taichinhckhoan/25_2263880/co_phieu_huy_niem_yet_se_co_lan_song_ban_thao.html 14 “Doanhnghiệphủyniêmyết – aithiệt, thiệtai?” (2013), báođiệntửTiềnPhong, Truycậpngày 27/5/2014 http://www.tienphong.vn/Kinh-Te/doanh-nghiep-huyniem-yet-ai-thietthiet-ai-646449.tpo Websites: http://www.stoxplus.com/ http://cafef.vn/ http://www.cophieu68.vn/ http://vietstock.vn/ 5.http://vtv.vn/chung-khoan/huong-giai-quyet-nao-cho-co-phieu-huy-niem-yet100043.htm http://www.moj.gov.vn/ http://www.ssc.gov.vn/ http://www.hsx.vn/ http://hnx.vn/ 10.http://www.catalyst.org/media/companies-more-women-board-directorsexperience-higher-financial-performance-according-latest 82 APPENDIX I Test for Multicollinearity The absence of multicollinearity between independent variables is necessary to apply logistic regression model To identify potential problems of multicollinearity among the independent variables, we established a correlation matrix presented in tables below Because all correlations are below 0.8, there have no multicollinearity problem General Delisting: • Financial Ratios NI DEBTRATIO 0.15792 0.34205 0.14643 0.05779 0.00428 0.02160 0.70200 0.39291 AUDITOR FIRM_AGE TOTAL_INVESTME NT ROE PE TA DIVRATIO 0.03838 0.07809 0.03578 0.07012 0.07459 0.04076 0.33124 0.03873 0.13107 0.00552 0.18247 0.49711 0.19408 1 0.11827 0.04323 0.05843 0.05038 0.30436 1 0.00362 0.05302 0.13028 0.11949 0.00262 0.00318 0.00707 0.05158 0.02745 0.16815 (The numbers from to denote NI, DEBTRATIO, AUDITOR, FIRM_AGE, TOTAL_INVESTMENT, ROE, PE, TA, DIVRATIO, respectively) • Corporate governance BOARD_SIZE BOD_IN_BOM 0.195196 BOD_SIZE 0.454632 0.255997 FEMALE 0.284939 0.150814 0.121302 FOREIGN 0.414105 0.083232 0.375566 0.16743 5 83 INDEPENDENCE 0.118065 SHAREHOLDERS_MEETIN G LARGE_SHAREHOLDER MSC_IN_BOM 0.000954 0.217487 0.477259 0.084651 0.013362 0.539925 0.175163 0.117482 0.134053 0.422752 0.023253 0.04458 0.04533 0.11185 0.09274 -0.02277 -0.06539 0.091954 0.140572 0.17207 0.45112 0.075159 0.040329 0.041854 0.016447 (The numbers from to denote BOARD_SIZE, BOD_IN_BOM, BOD_SIZE, FEMALE, FOREIGN, INDEPENDENCE, SHAREHOLDER_MEETING, LARGESHAREHOLDER, MSC_IN_BOM, respectively) Involuntary Delisting: • Financial Ratios: NI DEBT_RATIO -0.12962 AUDITOR 0.421687 -0.06975 FIRM_AGE 0.263821 -0.00445 0.0644 ROE -0.00578 0.069177 -0.00683 0.070284 PE 0.036383 -0.19032 0.097819 -0.02135 -0.0037 TA 0.506424 0.149322 0.356586 0.3676 -0.00393 0.025894 DIVIDEND_RATIO 0.513058 -0.35765 0.406611 0.296186 0.003893 0.005741 0.075243 (The numbers from to denote NI, DEBT_RATIO, AUDITOR, FIRM_AGE, ROE, PE, TA, DIVRATIO, respectively) • Corporate Governance: BOD_IN_BOM BOD_SIZE 0.18096 FOREIGN 0.14847 0.11637 -0.44717 0.43072 0.15747 0.12554 0.43128 0.00633 FEMALE INDEPENDENCE MSC_IN_BOM SHAREHOLDERS_MEETIN G BOARD_SIZE STATE_OWN 0.08408 0.02615 0.18057 0.10600 0.48968 0.10330 9 0.21795 0.03677 0.49787 0.05807 0.51286 0.06029 0.03214 0.14841 0.12742 0.36540 -0.17294 0.04807 0.08914 0.14901 0.20336 0.02883 0.59386 0.37502 0.23690 0.00299 1 0.04817 84 (The numbers from to denote BOD_IN_BOM, BOD_SIZE, FOREIGN, FEMALE, INDEPENDENCE, MSC_IN_BOM, SHAREHOLDER_MEETING, BOARD_SIZE, STATE_OWN, respectively) Voluntary Delisting • Financial Ratios NI TA DEBT_RATIO 0.68774 -0.1061 AUDITOR 0.34618 DIVIDEND_RATIO 0.35028 0.18909 -0.07364 FIRM_AGE TOTAL_INVESTMEN T ROE PE 0.04547 0.00270 8 0.13391 0.51297 0.06835 0.08249 0.11596 -0.02409 0.02761 -0.00191 -0.30319 0.10432 -0.01924 -0.0518 -0.02043 0.20295 -0.06595 0.12495 -0.06086 0.18961 0.36480 0.10341 0.0346 -0.07036 -0.14035 0.03312 -0.07581 -0.02276 0.04726 0.01175 (The numbers from to denote NI, TA, DEBTRATIO, AUDITOR, DIVRATIO, FIRM_AGE, TOTAL_INVESTMENT, ROE, PE, respectively) • Corporate Governance B O F O F E B O L A M S S H I N (The numbers from to denote BOD_SIZE, FOREIGN, FEMALE, BOARD_SIZE, LARGE-SHAREHOLDER, MSC_IN_BOM, SHAREHOLDER_MEETING, INDEPENDENCE, respectively) 85 Table 1: Descriptive statistics of financial variables related to delisting rate Variable (n = 201 firms) NI (billion VND) DEBTRATIO (times) DIVRATIO (times) TA (billion VND) TOTAL INVESTMENT (billion VND) ROE (%) PE (times) AUDITOR FIRM AGE (years) Mean Median 327.00 0.58 0.07 16900.00 7.32 0.56 0.00 329.00 Maximum 12300.00 1.60 0.68 576000.00 105.00 -0.31 12400.00 0.19 9.89 0.27 11.73 0.11 2.23 0.00 9.00 Minimum Std Dev -1620.00 0.01 0.00 9.76 1330.00 0.33 0.12 72200.00 -4590.00 1220.00 33.55 -17.14 3.48 1127.62 -509.50 101.66 1.00 0.00 0.44 52.00 2.00 8.32 Source: Group Estimation Table 2: Descriptive statistics of corporate governance variables related to delisting rate Variable (n = 201 firms) BOM SIZE (people) BOD IN BOM (people) BOD SIZE (people) FEMALE (people) FOREIGN (%) INDEPENDENCE (%) NUMBER OF LARGE Maximu Minimu Mean Median m m 5.72 5.00 11.00 3.00 Std Dev 1.53 1.55 1.00 6.00 0.00 1.05 4.65 4.00 21.00 1.00 2.45 0.92 1.00 6.00 0.00 1.11 7.88 0.17 49.00 0.00 14.01 0.14 0.00 1.00 0.00 0.34 3.12 3.00 12.00 0.00 1.91 86 SHAREHOLDER MSC IN BOM STATE (%) SHAREHOLDERS MEETING 1.63 1.00 9.00 0.00 1.88 0.23 0.13 0.97 0.00 0.26 1.07 1.00 4.00 1.00 0.34 Source: Group Estimation Table 3: Delisting finance logit regression model empirical results Finance Model Factors Net income (one year prior to delisting) Debt ratio (one year prior to delisting) Firm’s auditor Firm’s age (until delisting year) Total investment (one year prior to delisting) ROE (one year prior to delisting) Price-earnings ratio (one year prior to delisting) Total assets (one year prior to delisting) Dividend payout ratio (one year prior to delisting) Constant Source: Group Estimation Note: The table contains estimation results for the logistic regression model We report estimated coefficients as well as their significance (* significant at 10%, ** significant at 5%) Table 4: Involuntary delisting finance logit regression model empirical results Finance Model Factors Firm’s auditor Net income (one year prior to delisting) Total asset (one year prior to delisting) Debt ratio (one year prior to delisting) Firm’s age (until delisting year) Dividend payout ratio (one year prior to delisting) ROE (one year prior to delisting) Price-earnings ratio (one year prior to delisting) 87 Constant Source: Group Estimation Note: The table contains estimation results for the logistic regression model We report estimated coefficients as well as their significance (* significant at 10%, ** significant at 5%) Table 5: Voluntary delisting finance logit regression model empirical results Finance Model Factors Firm’s auditor Net income (one year prior to delisting) Total asset (one year prior to delisting) Debt ratio (one year prior to delisting) Firm’s age (until delisting year) Dividend payout ratio (one year prior to delisting) ROA (one year prior to delisting) Price-earnings ratio (one year prior to delisting) Total investment (one year prior to delisting) Constant Source: Group Estimation Note: The table contains estimation results for the logistic regression model We report estimated coefficients as well as their significance (* significant at 10%, ** significant at 5%) Table 6: Delisting corporate governance logit regression model empirical results Corporate Governance Model Factors Board of management size (measured by the number of member) Number of board of directors members who are in the board of management Board of directors size (measured by the number of member) Number of female in the board of management Foreign ownership (in percentage) The independence of board of management Number of large shareholder Number of board of management member has master degree 88 Number of shareholder meeting (in the year prior to delisting) State ownership (in percentage) Constant Source: Group Estimation Note: The table contains estimation results for the logistic regression model We report estimated coefficients as well as their significance (* significant at 10%, ** significant at 5%) Table 7: Involuntary delisting corporate governance logit regression model empirical results Corporate Governance Model Factors Board of management size (measured by the number of member) Number of board of directors members who are in the board of management Board of directors size (measured by the number of member) Number of female in the board of management Foreign ownership (in percentage) The independence of board of management Number of board of management member has master degree Number of shareholder meeting (in the year prior to delisting) State ownership (in percentage) Constant Source: Group Estimation Note: The table contains estimation results for the logistic regression model We report estimated coefficients as well as their significance (* significant at 10%, ** significant at 5%) Table 8: Voluntary delisting corporate governance logit regression model empirical results Corporate Governance Model Factors Board of management size (measured by the number of member) Number of large shareholders Board of directors size (measured by the number of member) Number of female in the board of management 89 Foreign ownership (in percentage) The independence of board of management Number of board of management member has master degree Number of shareholder meeting (in the year prior to delisting) State ownership (in percentage) Constant Source: Group Estimation Note: The table contains estimation results for the logistic regression model We report estimated coefficients as well as their significance (* significant at 10%, ** significant at 5%) Table 9: Summary of delisting phenomenon from 2009-2014 Stock Delisting reasons Delisting time Stock exchange before delisting Stock exchange after delisting ACC Voluntary delisting from UpCom to HOSE 30/12/2010 UPCOM HOSE AGC Losses in years continuously 17/07/2012 HNX OTC AGD Voluntary delisting 28/08/2013 HOSE OTC ALT Voluntary delisting HOSE => HNX 15/07/2009 HOSE HNX API Voluntary delisting UpCom => HNX 13/09/2010 UPCOM HNX APS Voluntary delisting UpCom => HNX 9/4/2010 UPCOM HNX BAS Losses in years continuously 3/5/2012 HOSE OTC BHC Losses in years continuously 26/5/2014 HNX OTC BHV Losses exceed charter capital 20/05/2014 HNX OTC BPC Voluntary delisting HOSE => HNX 2/6/2009 HOSE HNX BTC Regulation violated 1/7/2009 HOSE UPCOM BXD Regulation violated: not public company 6/12/2013 UPCOM OTC C32 Voluntary delisting UPCOM => HOSE 26/11/2012 UPCOM HOSE CAD Losses in years continuously 4/6/2012 HOSE UPCOM CAN Voluntary delisting HOSE => HNX 4/6/2009 HOSE HNX CDC Voluntary delisting HNX => HOSE 31/8/2010 HNX HOSE CHP Voluntary delisting UpCom => HNX 16/4/2014 UPCOM HNX CIC Regulation violated 23/9/2013 HNX OTC CLP Losses exceed chartered capital 15/05/2014 HOSE OTC CLS Voluntary delisting to go bankrupt 19/7/2013 UPCOM Bankruptcy CNT Losses exceed chartered capital 15/05/2014 HOSE OTC CSG2012 Bankruptcy 4/10/2012 HOSE Bankruptcy CSG2009 Voluntary delisting HNX => HOSE 16/05/2009 HNX HOSE CTV Voluntary delisting 20/12/2013 HNX OTC 90 DCC Regulation violated 15/12/2011 HOSE OTC DDM Losses in years continuously 10/4/2013 HOSE OTC DHI Bankruptcy 25/10/2013 HNX DHL Mergence 23/09/2013 HNX DLV Regulation violated in term of Public company 10/9/2012 UPCOM Bankruptcy Mergence HDO OTC DNP Voluntary delisting HOSE => HNX 22/06/2009 HOSE HNX DPC Voluntary delisting HOSE => HNX 04/06/2009 HOSE HNX DTC 22/03/2013 HNX UPCOM 5/9/2011 HOSE OTC DXP Voluntary delisting: HNX => UPCOM Regulation violated in term of information announcement Voluntary delisting HOSE => HNX 2/6/2009 HOSE HNX FBT Losses in years continuously 17/06/2013 HOSE OTC FDG Losses exceed chartered capital 15/05/2014 HOSE OTC FLC Voluntary delisting HNX => HOSE 4/8/2013 HNX HOSE FPC 11/8/2011 HOSE OTC 23/10/2013 HNX OTC GFC Losses in years continuously Regulation violated in term of information announcement Voluntary delisting 19/07/2013 HNX OTC GGG Losses in years continuously 23/05/2014 HNX GHA Mergence 24/08/2011 HNX HAI Voluntary delisting HNX => HOSE 16/12/2014 HNX HBB Mergence 17/8/2012 HNX HBD 28/06/2013 HNX 7/1/1905 HOSE HNX HDO Voluntary delisting HNX =>UpCom Stock exchange changing because of not enough charter capital HOSE => HNX Voluntary delisting UPCOM => HNX OTC Mergence HAP HOSE Mergence SHB UPCOM 23/09/2013 UPCOM HNX HHL Losses in years continuously 8/5/2014 HNX OTC HPB Voluntary delisting 16/09/2013 HNX OTC HPL Regulation violated in term of Public company 10/6/2014 UPCOM OTC HPR Mergence 3/5/2013 HNX OTC HSC Regulation violated in term of Public company 15/12/2009 HNX HT2 Mergence 16/04/2010 HOSE HTB Losses in years continuously 8/7/2014 HNX OTC Mergence HT1 OTC HU1 Voluntary delisting UPCOM => HOSE 6/10/2011 UPCOM HOSE HVC Regulation violated in term of Public company 31/05/2012 UPCOM OTC I40 Regulation violated in term of Public company 13/02/2014 UPCOM OTC IFS Losses exceed chartered capital 3/5/2013 HOSE OTC ILC Losses in years continuously 28/05/2014 HNX OTC IMT Voluntary delisting 29/02/2012 UPCOM OTC ITD Voluntary delisting UPCOM => HOSE 5/12/2011 UPCOM HOSE KBC Voluntary delisting HNX => HOSE 9/12/2009 HNX HOSE KBT Voluntary delisting 29/11/2013 HNX OTC DVD GBS HBD2009 91 KMF Mergence 23/12/2009 HNX KMT Voluntary delisting UpCom => HNX 1/12/2010 UPCOM Mergence KMR HNX MAS Voluntary delisting UPCOM => HNX 9/7/2014 UPCOM HNX MAX 17/02/2011 UPCOM HNX 23/10/2013 HNX OTC 11/5/2012 HOSE OTC MIC Voluntary delisting UpCom => HNX Regulation violated in term of information announcement Regulation violated in term of information announcement Losses in years continuously 23/06/2014 HNX OTC MIH Voluntary delisting 31/07/2013 HNX OTC MJC Voluntary delisting 18/01/2011 UPCOM OTC MKP Shareholder restructuring 12/7/2012 HOSE OTC MMC Losses in years continuously 8/5/2014 HNX OTC NHC Voluntary delisting HOSE => HNX 11/6/2009 HOSE HNX NIS Voluntary delisting 18/03/2014 HNX NKD Mergence 15/12/2010 HOSE NSN Losses in years continuously 8/7/2014 HNX OTC Mergence KDC OTC NSP Bankruptcy 15/07/2014 UPCOM Bankruptcy NVC Losses in years continuously 26/5/2014 HNX OTC PAN Voluntary delisting HNX => HOSE 3/10/2014 HNX HOSE PCT Voluntary delisting UPCOM => HNX 1/9/2011 UPCOM HNX PDN Voluntary delisting UPCOM => HOSE UPCOM PFV Mergence 03/12/2013 UPCOM PHS Voluntary delisting 10/1/2014 HNX PHT Mergence 24/01/2013 HOSE PMS Voluntary delisting HOSE => HNX 02/06/2009 HOSE HOSE Mergence VIC OTC Mergence TLH HNX PPP Voluntary delisting UpCom => HNX 11/7/2011 UPCOM HNX PRUBF1 Bankruptcy 4/9/2013 HOSE Bankruptcy PSG Losses in years continuously 4/6/2014 HNX OTC PVA Losses in years continuously 09/06/2014 HNX OTC PVF Mergence 24/9/2013 HOSE Mergence PXM 15/5/2014 HOSE OTC 26/05/2014 HNX OTC REM Losses exceed chartered capital Audit company refuses to make conclusion about financial statements Regulation violated in term of Public company 06/06/2014 UPCOM OTC RHC2013 Mergence 11/12/2013 HNX Mergence RHC2009 Voluntary delisting HOSE => HNX 24/06/2009 HNX HNX S27 Losses exceed chartered capital 17/05/2013 HNX S64 Mergence 13/07/2012 HNX S91 Mergence 7/1/2014 HNX S96 Audit company refuses to make conclusion about 30/05/2014 HNX OTC Mergence SD6 Mergence SD9 OTC MCL MCV QCC 92 financial statements SAF Voluntary delisting HOSE => HNX 2/6/2009 HOSE HNX SBS Losses exceed chartered capital 25/03/2013 HOSE UPCOM SCC Losses in years continuously 23/05/3013 HNX OTC SD8 Losses exceed chartered capital 10/5/2013 HNX OTC SDB Losses in years continuously 04/06/2014 HNX OTC SDJ Losses exceed chartered capital 21/05/2013 HNX OTC SDN Voluntary delisting HOSE => HNX 12/6/2009 HOSE HNX SDS Voluntary delisting HNX => UPCOM 14/09/2012 HNX SEL Mergence 1/10/2013 HNX SFN Voluntary delisting HOSE => HNX 08/06/2009 HOSE UPCOM Mergence SJE HNX SGC2009 Voluntary delisting HOSE => HNX 11/6/2009 HOSE HNX SGH Voluntary delisting HOSE => HNX 23/07/2009 HOSE HNX SHC2013 Losses in years continuously 5/6/2009 HNX OTC SHC2009 Voluntary delisting HOSE => HNX 21/05/2013 HNX HNX SHP Voluntary delisting UPCOM => HOSE 14/07/2014 UPCOM HOSE SJ1 Voluntary delisting HOSE => HNX 2/6/2009 HOSE HNX SJM 25/04/2014 HNX OTC 26/03/2010 HNX OTC SME 2010 Losses in years continuously Regulation violated in term of information announcement Voluntary delisting UPCOM => HNX 26/10/2012 UPCOM SSS Mergence 13/7/2012 HNX STL Losses exceed chartered capital 26/7/2013 HNX OTC Mergence SD6 UPCOM SVI Voluntary delisting HNX => HOSE 29/02/2012 HNX HOSE SVS 2013 Losses in years continuously 10/5/2013 HNX OTC SVS 2010 7/7/2010 UPCOM HNX 23/9/2013 HNX OTC TAS 2010 Voluntary delisting UPCOM => HNX Regulation violated in term of information announcement Voluntary delisting UPCOM => HNX 7/2/1905 UPCOM HNX TBC Voluntary delisting HNX => HOSE 29/11/2009 HNX HOSE TCO Voluntary delisting UPCOM => HOSE 16/12/2011 UPCOM HOSE TCT Voluntary delisting HOSE => HNX 24/09/2009 HOSE HNX THV Losses exceed chartered capital 4/7/2013 HNX OTC TLC Losses in years continuously 17/5/2013 HNX OTC TLT Voluntary delisting HNX => UPCOM 28/02/2013 HNX UPCOM TMC Voluntary delisting HOSE => HNX 2/6/2009 HOSE HNX TRI Voluntary delisting 10/4/2012 HOSE OTC TTC Voluntary delisting HOSE => HNX 29/12/2009 HOSE HNX UNI Voluntary delisting HOSE => HNX 02/06/2009 HOSE HNX V11 Audit company refuses to make conclusion 17/08/2012 HNX OTC VCH Losses exceed chartered capital 21/05/2013 HNX OTC VCV Losses in years continuously 20/05/2014 HNX OTC SME 2012 TAS 2013 93 VDS Voluntary delisting => HNX 17/05/2010 UPCOM HNX VES Losses in years continuously 3/5/2013 HOSE OTC VFC Voluntary delisting 31/01/2013 HOSE VFMVF1 Change to opening fund 25/09/2013 HOSE VFMVF4 Change to opening fund 27/11/2013 HOSE VFMVFA Change to opening fund 8/3/2013 HOSE VGP Voluntary delisting HOSE => HNX 03/06/2009 HOSE UPCOM Opening fund Opening fund Opening fund HNX VHH Losses in years continuously 23/05/2014 HNX OTC VIA Regulation violated 29/05/2012 UPCOM OTC VKP 25/06/2012 HOSE UPCOM 26/7/2012 HNX OTC VPC Losses in years continuously No transaction in Hanoi Stock exchange within 12 months Voluntary delisting UPCOM => HNX 13/6/2012 UPCOM HNX VPL Mergence 26/12/2011 HOSE VIC VSG Losses in years continuously 3/5/2013 HOSE UPCOM VSP Voluntary delisting HNX => UPCOM 1/6/2012 HNX UPCOM VTA2011 Losses in years continuously 02/06/2011 HNX OTC VTA2009 Voluntary delisting HOSE => HNX 28/07/2009 HNX HNX VTC Voluntary delisting HOSE => HNX 2/6/2009 HOSE HNX XMC Voluntary delisting 12/11/2013 HNX OTC YBC Losses in years continuously 28/05/2014 HNX YSC Merge with HAP 24/08/2011 HNX UPCOM Mergence with HAP VMG Source: Stoxplus Figure 1: Delisting classification in 2009-2014 Sour ce: Stoxplus Figure 2: Number of delisting companies in each stock exchange in 2009-2014 94 Source: Stoxplus Figure 3: Number of delisting companies in 2009-2014 Source: Stoxplus 95 [...]... the end of 2012 Vietnam's stock market was considered one of 10 countries which had the strongest level of recovery and higher growth than the stock markets in the world Market capitalization: capitalization was around 964 trillion (199 trillion increased over at the end of 2012) and equivalent to 31% of GDP The value of transaction: the average of the transactions’ scale reached 2,578 billion per transaction,... framework: 3.2.1 Conditions of listing: Until July of 2014, according to Decree 59, conditions for stock companies in order to be posted on HNX and HOSE are: 1 Article 53, conditions of posted stock on Ho Chi Minh Stock Exchange (HOSE): 1.1 Conditions of posted shares: a) Being a joint stock company with contributed authorized capital at the time of posted registration from 120 billion VND or above;... studies concentrate on the definition and classification of delisting, the causes of delisting and motivation, benefits for company and shareholders after delisting Second, journals provide information about the delisting situation, analyze the causes, motivations, effects and consequences of delisting activities on the Vietnamese stock exchange in a subjective perspective Generally, the journals about delisting. .. stock market, there are only a few research works that directly related to delisting phenomenon Most of the existing papers, focus on delisting, are journals which are mainly written to provide information, give comments or evaluate on stock removal in Vietnamese stock exchange The content of all research papers and journals studying on Vietnamese delisting phenomenon can be divided into two sets of. .. meanwhile, researching on empirical contributions, qualitative methods are well utilized (Achleitner et al 2010) Finally, the last domain of research regards the relationship between corporate governance systems and the laws and regulations of financial markets, on one hand, and the decision to go private, on the other hand (Leuz 2007; Doidge et al 2010; and Iliev 2010) 2.3.2 Researches on Vietnamese stock markets:... (58%) End of 2009, the total market capitalization of Vietnam’s stock market was 620 trillion; the number of listed companies reached 447 companies, the number of investors reached 739,000 accounts; value list of foreign investors in the stock market as of December 2009 nearly $ 6,6 billion With these results, according to the State Securities Commission (SSC), Vietnam's stock market had strong growth... In case of stock listed registration of credit institutions that are joint stock companies, apart from conditions specified in paragraph 1 and 2 of this Article, they must be approved by the State Bank of Vietnam 2 Article 54 Conditions for posting stock at the Hanoi Stock Exchange (HNX) 2.1 Conditions for posted shares a) Being a joint stock company with contributed authorized capital at time of posted... growth 31 due to the positive impact of macroeconomic prosperity and the positive continuity of the listed companies’ operation 3.1.5 Period of year 2010: The rise and fall of a year of Vietnam’s stock market Entering 2010, Vietnam's stock market continued to grow stronger as the foreign exchange market continued to stabilize, the State Bank removed bottlenecks of interest rate input and output From... In 2005, the growth rate of the stock market was doubled 2004, mobilized 44,600 billion 3.1.2 Period 2006-2007: Period of stock market explosion With the growth amounted to 60% from the beginning to the middle of 2006, Vietnam’s stock market has become the second rapidity of growth rate in the world and the capitalization volume increased 15 times within 1 year Vietnam's stock market in 2006: VN-Index... delisting transition economies since no exit rules are applied in such time of delisting Additionally, massive delisting can bring to the whole market negative emotions Concurrence of delisting without new listing resulted in the fall of the market, which offered fewer investment opportunities (Fungáčová&Hanousek 2011) Also, Inter alia, O’Donnell (1969) and Jarrell (1984) found an average decline of9 % ... delisting probability on Vietnam’s stock market? Whichfactors affectthe probability of voluntary delistingon Vietnam’s stock market? What factors affect the probability of involuntary delisting on Vietnam’s. .. reduce the number of potential delisting firms From these above analyses, Empirical research on factors affecting probability of delisting on Vietnam’s Stock Market is new research topic, valuable... scope: Research object is the delisting phenomenon in Vietnam stock market in which the research team focuses on delisting reasons and motivations, factors affecting delisting probability Research