Current issue - Vol. 21, no. 1all articles

UNVEILING GROWTH DIVERGENCE ON LSE: FTSE100 VS. AIM LISTED COMPANIES

Monika Bolek | Agata Gniadkowska-Szymańska | Piotr Pietraszewski
pages: 27-41; JEL classification: G32; Keywords: Growth Potential, Growth of Companies, Less Developed and Mature Companies; Abstract: The aim of the article is to show differences in the growth process that translates into growth potential in groups of enterprises listed on the main and alternative markets of the London Stock Exchange. The study covered companies included in the Financial Times Stock Exchange 100 Index (FTSE 100), as well as companies listed on the Alternative Investment Market (AIM). Based on the results of statistical analysis including correlation and regression analysis of panel data, it was found that companies listed on the alternative exchange (AIM) were characterized by higher growth potential and faster growth than those listed on the main market (FTSE 100). The added value of the article is related to results indicating that there is a difference in the growth process between companies traded on both markets. This conclusion can be useful for investors expecting the growth of share value in the investment process.
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