Will The Jamaica Stock Exchange Step-up And Lead The Charge For A Single Regional Stock Exchange by 2020? Part 3/3
SMEs Can Transform Their Financial Performance by Listing on the Stock Exchange
Marcia Forbes (PhD), executive chairperson of Phase 3 Productions, in an article published in the Gleaner Newspaper last year pointed to early research findings coming out of the Mona School of Business and Management (MSBM) by Dr William Lawrence and Dr Twila-Mae Logan showing that small and medium-size enterprises (SMEs) can transform their financial performance by listing on the stock exchange. Bemoaning the manner in which theories of capital structure seem almost dismissive of SMEs going the route of public equity, the researchers also pointed to the dearth of academic research into this area she said
Continuing Forbes indicated that Lawrence and Logan seem to be on to something important, as they track the performance of SMEs two years before and two years after their initial public offering (IPO), using their return on assets and debt-equity ratio as two important variables.
Going forward, one anticipates that these researchers will drill down into SMEs that succeed, compared to those that do not and eventually tease out key performance indicators for success, she concluded.
Who Should Be Leading This Charge?
The real question is who should be leading this charge and taking the decisions required to get a regional stock exchange up and running.
Marcia Forbes (PhD), pointed to Jamaica as the obvious choice. In her article she makes reference to a contribution made by Professor Sir Hilary Beckles speaking at a Mona School of Business and Management (MSBM) forum titled ‘Stock Market as Driver for Economic Growth”. Beckles in his presentation highlighted the consequences of fragmentation of capital within the region and insisted that Jamaica was in a prime position to lead the charge to create a Caribbean capital market.
Businessuite Magazine supports and endorses the view of Professor Sir Hilary Beckles and countless others that Jamaica was in a prime position to lead the charge to create a Caribbean capital market. The question now is will the Jamaica Stock Exchange step-up and lead the charge for a Single Regional Stock Exchange by 2020?
The quotes above expressed by Marlene J. Street-Forrest General Manager Jamaica Stock Exchange (JSE) are her personal views on the matter and do not necessarily reflect the views of the JSE board.