Original scientific paper
Lessons in structuring SME dedicated exchange for developing capital markets – a practitioner’s perspective
Aljoša Šestanović
; University College Nikola Šubić Zrinski, Education Group Zrinski, Zagreb, Croatia
Antonela Šimunović
; University College Nikola Šubić Zrinski, Education Group Zrinski, Zagreb, Croatia
Valentina Kasum
; University College Nikola Šubić Zrinski, Education Group Zrinski, Zagreb, Croatia
Abstract
Access to finance is nowadays widely recognized as one of the main impediments for growth and development of the SME sector. As a direct consequence of global economic crisis, the problem of financing of SMEs has only recently come under closer scrutiny of policymakers, but has also attracted the attention of market operators. For several years, a number of public and market-based initiatives towards SMEs and investors have taken place in developed (and to much lesser degree in emerging markets), in order to promote visibility and access of SMEs on stock exchanges, as well as greater participation of investors’ community. Designing the optimal market structure for SMEs in developing markets seems to be more of an art than the exact science as it requires not just finding the fine balance between increasing costs of the listing process for the SME issuer and acceptable mechanisms to protect investors, but also implies struggle with liquidity deficiency of the prime market listings.
Keywords
Small and medium enterprises; SME exchanges; MTFs; financing gap; equity financing, financing life cycle model
Hrčak ID:
134622
URI
Publication date:
1.12.2014.
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