Policy Implications for Small and Medium-Sized Enterprise Exchange: A Study of Market of Alternative Investment (MAI)

Abstract

Small and Medium-Sized 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, as 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 compared to alternative capital markets in other countries. In fact, there are enormous numbers of SMEs in Thailand that have not gained access to public funding and the capital markets as yet. Therefore, a study of the factors that impact SMEs’ intention to pursue an initial public offering (IPO) in the MAI would be necessary to increase SME access to public funding. In this study, the determinants that impacted Thai SMEs’ intention to pursue an IPO in the MAI were investigated using multiple regression technique. Subsequently, the research findings were discussed and the policy implications for the SME exchange concluded. The implications from this research are expected to be broadly advantageous for the governing body of Thailand’s capital market, the Securities and Exchange Commission, and SME firms that seek public funding opportunities.