The paper "Analysis of Porter's Bulge Hypothesis" is a great example of a research paper on macro and microeconomics. Alternative Investment Market (AIM) is situated in the UK and it is a branch in the London Stock Exchange market. It specializes in enabling the smaller companies in the region to easily float their shares in a system which is highly regulated unlike in the case of the major market. AIM was founded in the year 1995 and since then it has managed to raise approximately 24 billion dollars from at least 2200 listed companies.
Flexibility in the sector is provided to the companies ensuring that minimal or no capitalization regulations are requirements are required and as such no limit to the number of shares to be issued by the companies. In the last decade, many companies transferred their operations from the Main Market and concentrated it on the AIM. This was facilitated by the Market having a preferential tax advantages to its investors and also providing less burden on issues of regulation. According to the data provided in 2005, two of the companies moved away from the Main Market in an attempt to join AIM, while 40 companies joined AIM from the Main Market. Currently, AIM has been involved in the international exchange due to the minimal regulatory burden that is imposed by the international markets.
This is duly in accordance to Sarbanes-Oxley Act despite that less than 25% of the listed companies in AIM qualify to be listed in the overall U. S. Stock exchange market. In the year 2005, the foreign companies admitted to AIM were approximately 270. The FTSE Group has designed indices which are used in the measurement of the AIM performance.
These include: FTSE AIM All-Share Index, FTSE AIM 100 Index, and FTSE AIM UK 50 Index. In the analysis the focus will be focused on the 12 listed companies in AIM which are; Eaga, Real Good food, GTL Res, Wynnstay, Accsys, Eleco, TEG group, Hydro International, Geg, Helius Energy, Ceres power holdings, and the Clipper wind Power. The financial statements will be analyzed in order to determine whether they comply with Porters bulge hypothesis on the effect of the growth of a company to its overall sales turnover or the reported profits for the companies.
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