Policy implications for small and medium enterprise exchange : a study of market for alternative investment (mai)

Abstract

Small and Medium Enterprises (SMEs) play an important part in Thailand’s economy; however, most SMEs have been struggling with financing their business operation and future growth. Undeniably, public funding is an untapped financing option for SMEs. Thus, the SME exchange is a crucial platform for SMEs to access public funding. In fact, the Market for Alternative Investment (MAI), operated under the Stock Exchange of Thailand, is an alternative capital market for SMEs. Although the MAI has been continuously growing, MAI still has a relatively smaller number of listed companies and market capitalization compared to alternative capital markets in other countries. Therefore, further development policies would be necessary to increase SME access to public funding and promote corporate governance.

In this study, three analyses were conducted. First, the determinants that impacted Thai SMEs’ intention to pursue the initial public offering (IPO) were investigated using multiple regression technique. Second, the determinants that impacted the corporate governance level of firms in the MAI were examined through the application of logistic regression. Thirdly, key takeaways and lessons learned from other alternative capital markets were studied and comparative analysis was conducted. Policy implications on the SME exchange were discussed and concluded based on findings from all the analyses with final recommendations. The implications from this dissertation are expected to be broadly advantageous for the governing body of capital market, the regulators, the exchange commission and SME firms that sought for public funding opportunities.