Listing decisions of UK companies: motivations
Findings from a survey of mid-sized businesses on perceptions of the UK stock exchanges. BIS research paper number 126.
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Presents the findings from a survey of predominantly UK owned and based mid-sized businesses (MSBs). It covers 17 UK stock exchange listed businesses and 14 unlisted businesses. It examines perceptions about the UK stock exchanges and associated corporate governance and reporting issues. The findings presented may not be representative of the UK business population, but they may explain issues of concern to wider UK business.
Companies list on a UK stock exchange for a variety of reasons including:
- raising funds for business development
- profile/reputational gains
- providing exit options for investors
UK markets are seen to offer value for money and are known for their good reputation and light touch regulation.
The risks for companies running into trouble are a deterrent to listing. These include:
- the costs of managing a greater number of shareholders and their expectations
- some reporting requirements that are considered unwelcome