http://dx.doi.org/10.1142/S0219091513500094">
 

Document Type

Journal Article

Department/Unit

Department of Finance & Decision Sciences

Title

The determinants of performance in alternative markets for small and medium enterprises: International evidence

Language

English

Abstract

Several stock exchanges have launched alternative markets to target small and medium enterprises. In this research, we examine the determinants of the operating and stock return performance of alternative markets. Our results suggest that turnover and stock returns of alternative markets affect each other. Hence, it is imperative to examine the performances of alternative markets in a simultaneous equation system to mitigate the causality among performance variables. In addition, a good anti-director rights environment and a noncommon law origin country contribute to a higher turnover and additional new listings in an alternative market. A common law origin country, all else the same, contributes to higher alternative market stock returns. A high index of economic freedom negatively correlates with the turnover of an alternative market. The accounting standard and the governance structure of an exchange are not related to the operating and stock return performance in alternative markets. This research contributes to stock market development by focusing on alternative markets. © 2013 World Scientific Publishing Co. and Center for Pacific Basin Business, Economics and Finance Research.

Keywords

Alternative markets, listing, operating performance, second board markets

Publication Date

2013

Source Publication Title

Review of Pacific Basin Financial Markets and Policies

Volume

16

Issue

2

Start Page

1350009-1

End Page

1350009-26

Publisher

World Scientific Publishing

ISSN (print)

02190915

ISSN (electronic)

17936705

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