What is the role of public feeder markets in developing technology-based small firms? An exploration of the motivations for listing on AIM since the GFC

Owen, Robyn (2015) What is the role of public feeder markets in developing technology-based small firms? An exploration of the motivations for listing on AIM since the GFC. Venture Capital: an International Journal of Entrepreneurial Finance, 17 (1-2). pp. 87-112. ISSN 1369-1066

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Abstract

In the aftermath of the 2007 global financial crisis (GFC) stock markets experienced sharp decline in listings and marked reduction in Initial Public Offerings (IPOs). This paper explores the factors determining UK technology based small firm (TBSF) listings on the UK Alternative Investment Market (AIM) and whether this market has a role to play in their future development.

A case study approach is used to contrast the experiences of five recent AIM listed TBSFs with five TBSFs approaching private equity investment exit that are considering an IPO.

The paper concludes that macro market conditions, rather than managerial resource base or AIM market structural factors were most influential in TBSF pecking order preferences to undertake IPOs. From a resource based management perspective lifelong entrepreneurs were more likely than serial entrepreneurs to favour an IPO exit, as it supported their aims to continue to manage and grow UK-based companies. Additionally, with a more buoyant and sustainable AIM market TBSF investors are more likely to choose IPOs. To conclude, AIM played an important role in listed UK TBSF development. A more buoyant AIM could ease the UK finance escalator’s flow, facilitating more rapid UK TBSF growth.

Item Type: Article
Additional Information: Published online: 09 Apr 2015. Online ISSN: 1464-5343, Special Issue: Financing Small and Medium Sized Enterprises: Meeting the challenges after the Global Financial Crisis. Guest Editors: Rob Baldock and Richard Harrison
Research Areas: A. > Business School > Centre for Enterprise and Economic Development Research (CEEDR)
Item ID: 18114
Notes on copyright: This is an Accepted Manuscript of an article published by Taylor & Francis in Venture Capital on 09/04/2015, available online: http://www.tandfonline.com/10.1080/13691066.2015.1021028
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Depositing User: Stanislava Angelova
Date Deposited: 14 Oct 2015 11:26
Last Modified: 31 May 2019 06:18
URI: https://eprints.mdx.ac.uk/id/eprint/18114

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