The AIM option: An empirical examination of selected factors contributing to U.S. firms' decision to list on London's Alternative Investment Market.

摘要

London's Alternative Investment Market (AIM) has experienced unprecedented growth since its inception circa 1995, and most recently amongst smaller U.S. firms seeking public equity opportunities abroad as a result of increased U.S. regulation and the passage of the Sarbanes Oxley (SOX) legislation in 2002. Current research has shown that many of these firms now perceive listing on AIM as more beneficial financially than listing their firm's securities on their own domestic exchanges. This study documents selected factors that contribute to an AIM listing decision by smaller U.S. firms using both prelisting characteristics and post-listing performance data derived from initial public offerings IPO's during years 2004 through 2006. The study findings demonstrate that a significant relationship exists between an AIM listing decision, and the firm's access to competitive capital, lower listing costs, and dependence on foreign sales.