Delisting of the Russian Stock Companies

This paper explores the phenomenon of delisting of public companies from the stock exchange, its causes and consequences, as well as the dependence of the financial performance of Russian companies on the delisting factor. The indicators studied include the company's liquidity, equity size, revenue, profit margin, and other financial indicators. The study was conducted on the basis of companies that carried out a turnover of shares on the Moscow Stock Exchange and was compared with a control sample of companies remaining on the stock exchange. 2017 was chosen as the baseline data for the study, the most current reporting period. Three econometric models were developed for data analysis: a regression model, a binary choice logit model, and a binary choice probit model. According to the results of the study, it was revealed that the higher the equity capital and the better the current liquidity ratio, the revenue volume, the profit margin and the return on equity, the higher the likelihood that this company was delisted. This result partly confirms previous research problems on foreign markets.