Can DuPont Analysis Predict Voluntary Delisting from Stock Exchange? Evidence from Pakistan

Autor:	Haji Suleman Ali, Muhammad Nadir Hussain Khan
Rok vydání:	2019
Předmět:	Stock exchange Financial system Business DuPont analysis
Zdroj:	Jinnah Business Review. 7:41-48
ISSN:	2307-7921 2070-0296
DOI:	10.53369/ofjk7670
Popis:	This study explores whether voluntary delisting of companies from stock exchanges can be predicted by the DuPont Model. ROE (Return on Equity), NPM (Net Profit Margin), ATO (Assets Turnover) and LM (Leverage Multiplier) of 13 voluntarily delisted firms from Karachi Stock Exchange were compared with same ratios of respective sectors for 6 years preceding the delistment year by applying t-test. Difference of means of DuPont ratios between voluntarily delisted firms and their respective sectors were not found statistically significant. Thus, ROE, NPM, ATO and LM, which are the measures of profitability, asset utilization (efficiency) and leverage respectively, are not the significant predictors of voluntary delisting decisions in Pakistan. To the best of researchers knowledge, this study is first attempt to differentiate between voluntarily delisted and listed companies on the basis of DuPont Model.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::2e5975007a383955ac8021c721ddd4fa https://doi.org/10.53369/ofjk7670 Zobrazit plný text záznamu