Can The Market Fix A Wrong Administrative Decision? Massive Delisting On The Prague Stock Exchange

This paper contributes to the investigation of the emerging stock markets in transition economies, namely in the Czech Republic. The authors estimate the impact of the various determinants of shares delisting e.g. exclusion from public trading on the Prague Stock Exchange (PSE) during the period 1993-2004. Unlike its counterparts in Poland or Hungary, exceptionally large amounts of shares were delisted from the PSE. Using the data on listed and delisted companies they show that the pre-privatization and privatization characteristics of the companies were decisive for delisting.