A study carried out by the Mona School of Business and Management (MSBM) has found that raising capital on the Jamaica Stock Exchange is a good bet for Small and Medium Enterprises (SMEs).
The research which was carried out by MSBM’s Dr. William Lawrence and Dr.Twila-Mae Logan examined the performance of 19 Companies that listed on the Junior Market of the Jamaica Stock Exchange (JSE).
They found that SMEs can transform their financial performance by listing on the stock exchange.
The study also found that SMEs reduce debt and increase profitability following IPOs on the Junior Stock Market and that
this was a crucial step for companies focused on growth over cost of capital.