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Unmasking Delistings: A Multifactorial Analysis of Financial, Non-Financial, and Macroeconomic Variables

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Lansdell, Peter, Botha, Ilse, Marx, Ben·2025·Journal of Risk and Financial Management
DOI 10.3390/jrfm18040194
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Abstract

The stability of financial markets is influenced by the strength and transparency of companies listed on stock exchanges. This paper explores how financial, non-financial, and macroeconomic factors influence delisting likelihood among companies listed on the Johannesburg Stock Exchange (JSE), addressing a limitation in the current body of knowledge that often overlooks the combination of these factors, especially within the context of developing economies. Using a sample of 302 companies delisted between 2010 and 2023 and 302 as a control group, we analyzed 72 variables through a multivariate panel probit regression model. Our findings reveal that delisting decisions are driven by a complex interplay of financial health, governance practices, and macroeconomic conditions. Financial health, including liquidity and market valuation, is crucial in mitigating delisting risk. Non-financial factors, such as corporate governance and shareholder composition, further reduce the likelihood of delisting. Macroeconomic conditions, including inflation and interest rates, introduce significant external pressures. This study is especially relevant in developing economies like South Africa, where economic volatility adds risks for listed companies. The results provide insights for companies, investors, regulators, and policymakers to ensure a stable and robust stock market and financial system and identify early warning signals for delisting.

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Metadata

Authors
Lansdell, P., Botha, I., & Marx, B.
Affiliations
  • University of Johannesburg (ZA)
  • Department of Accountancy, University of Johannesburg, P.O. Box 524, Auckland Park, Johannesburg 2006, South Africa
Corresponding author
Lansdell, Peter
ORCID
Venue
Journal of Risk and Financial Management
Publisher
MDPI AG
Published
2025-04-04
Volume
18
Issue
4
Pages
194
ISSN
  • 1911-8066 (ISSN-L)
  • 1911-8074
DOI
10.3390/jrfm18040194
OpenAlex
W4409169290
Cited by
4
References
4
Citations by year
2026: 4
FWCI
10.44
Type
journal article
Language
en
Open access
Licence
Locations
  • Journal of risk and financial management (publishedVersion, cc-by)
  • Preprints.org (acceptedVersion, cc-by)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Corporate Finance and Governance
  • Social Sciences › Business, Management and Accounting › Accounting › Financial Distress and Bankruptcy Prediction
  • Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
Keywords
delisting, Johannesburg Stock Exchange, corporate governance, liquidity, market valuation, inflation, interest rates, macroeconomic conditions, early warning indicators, developing countries, stock market stability

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