Smaller firms and public equity: new platforms with old problems
by Catherine R. Macaulay
International Journal of Globalisation and Small Business (IJGSB), Vol. 10, No. 3, 2019

Abstract: Paradoxically, while numbers of listed companies are declining in advanced economies, new equity markets for small and medium-sized enterprises (SMEs) are being developed and recommended as an alternative way of raising capital. This paper contests the conventional wisdom that persistently low levels of public listing represents deficiencies of market design and presents publicly traded equity as fundamentally unsuitable for SMEs due to inherent structural flaws. It begins with the controversial origins of publicly traded equity and finds that developing other investment channels in a culture of 'direct investment in enterprise' would be more beneficial to both SMEs and economies than the development of an 'equity culture' with its associated unproductive trading. In particular, internal funding, recognised as a widespread SME financing preference and common denominator of successful small firms, is found worthy of further examination for opportunities and efficiencies rather than dismissal as an inconsequential or temporary financing method.

Online publication date: Sun, 09-Jun-2019

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Globalisation and Small Business (IJGSB):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com