Reuters reports that 35 foreign companies have declared their intent to delist from U.S. stock markets since April. And most of them say the burden associated with meeting two sets of accounting standards and complying with Sarbanes-Oxley is to blame.
The list includes well-known companies like British Airways and those with long-standing U.S. listings. One Japanese insurer, for instance, is ending a listing it began nearly 45 years ago. The companies are working to assure their investors that they will continue to comply with local listing requirements and maintain good governance practices, according to Reuters.
At the same time, U.S. Securities and Exchange Commission chairman Christopher Cox maintains that Sarbanes-Oxley isn't hurting the U.S. markets. Testifying before Congress recently, he told lawmakers he doesn't agree that Sarbanes-Oxley is driving foreign listings away. Commissioner Raol Campos went a step further and asserted that Sarbox regulation actually draws foreign companies to U.S. markets.