We have been reporting recently on the issues facing the smaller listed company market. See this post on concerns about the decline in smaller company IPOs, and this post on PwC’s survey of AIM company sentiment. Hard on the heels of that PwC survey comes this Grant Thornton report, “Back to basics for equity markets: Are London’s equity markets failing the small cap sector?”. The Grant Thornton report contains a short discussion of:
- Structural reasons for neglect of the small cap market; and
- The decline in the support system for smaller listed companies
as well as advice to smaller companies from institutional investors on how to engage better with the investor community.
Structural problems in the market, and a weakening support system
The Grant Thornton report identifies these structural problems in the small cap market: