Do less regulated markets attract lower quality firms? Evidence from the London AIM market

Ulf Nielsson

Journal of Financial Intermediation, 2013, vol. 22, issue 3, 335-352

Abstract: The paper examines whether the moderately regulated London AIM market is at a disadvantage in attracting high quality firms. The results show that firms listed on AIM are of the same quality level as firms listed in the US and in Continental Europe, albeit smaller in size. Furthermore, the delisting and valuation pattern is the same across markets, whereas AIM listed firms raise relatively more capital. Thus, rather than catering to low quality firms seeking to conceal their type, the AIM market attracts small firms that – due to size – face disproportional regulatory costs, but are otherwise equivalent to firms listing in more regulated markets.

Keywords: Competition; Stock exchanges; Listing; Delisting; Regulation (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinin:v:22:y:2013:i:3:p:335-352

DOI: 10.1016/j.jfi.2012.11.005

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