The The NewConnect market as a source of raising funds for the SMEs
DOI:
https://doi.org/10.12775/EiP.2024.018Keywords
NewConnect market, SMEs, capital market, voivodships of Eastern PolandAbstract
Motivation: The NweConnect market is intended for small, innovative and dynamically developing companies, especially in the so-called new economy. A debut on this market is one of the possible strategies for raising capital by a small and medium-sized entrepreneur. In times of economic downturn and limited supply of capital on the capital market, only the most credible have a chance to raise capital on the alternative market.
Aim: recognition of the actual nature of companies listed on the alternative market in Poland, with particular emphasis on the voivodeships of Eastern Poland. It was assumed that mainly young, innovative and fast-growing companies are listed on the NewConnect market. The analysis was based on a review of domestic and foreign literature and on the estimated linear econometric model.
Results: Most companies on the NewConnect market are not characterized by rapid development, short period of entering the market and a high level of innovation. There are also companies from industries where the level of innovation was not a key element of activity from the beginning. In addition, the changes that have taken place (i.e. from market entry to the current situation, 2007–2022) are not favourable. While at the beginning of their activity (since 2007) listed companies were characterized by a relatively high level of innovation, now (2022) this level is decreasing. This justifies the need for further research on the development of the NewConnect market as a source of financing for small and medium-sized enterprises.
References
Annotated presentation of regulated markets and national provisions implementing relevant requirements of MIFID (Directive 2004/39/EC of the European Parliament and of the Council) (OJ C 158, 11.7.2009).
Bernstein, S., Dev, A., & Lerner, J. (2020). The creation and evolution of entrepreneurial public markets. Journal of Financial Economics, 136(2), 307–329. https://doi.org/10.1016/j.jfineco.2019.10.002.
Busch, D., & Han, G. (2021). Alternative trading venues in the EU: multilateral trading facilities, organised trading facilities, and systematic internalisers. In J.-H. Binder, & P. Saguato (Eds.), Financial market infrastructures: law and regulation (pp. 158–195). Oxford University Press. https://doi.org/10.1093/law/9780198865858.001.0001.
Central Statistical Office. (2022). Activities of non-financial enterprises in 2021. Retrieved 31.03.2023 from https://stat.gov.pl/en/topics/economic-activities-finances/activity-of-enterprises-activity-of-companies/activity-of-non-financial-enterprises-in-2021,1,16.html.
Degryse, H., & van Achter, M. (2001). Alternative trading systems and liquidity. Center for Economic Studies Discussions Paper Series, 01.22, 1–29.
Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014).
Feder-Sempach, E. (2010). Rynki alternatywne w strefie euro i Unii Europejskiej a NewConnect: analiza porównawcza. Acta Universitatis Lodziensis: Folia Oeconomica, 238, 35–45.
FESE. (2023). Retrieved 31.03.2023 from https://www.fese.eu/about-fese.
Goldsmith, R. (1969). Financial structure and development. Yale University Press.
GPW. (2016). Alternative trading system rules. Retrieved 31.03.2023 from https://newconnect.pl/pub/NEWCONNECT/files/PDF/regulacje/0_11_ATS_RULES_15072022.pdf.
GPW. (2022). New Connect 15 lat dynamicznego rozwoju. Retrieved 31.03.2023 from https://gpw.pl/pub/GPW/pdf/15_lat_NewConnect_raport_GPW.pdf.
Granier, C., Revest, V., & Sapio, A. (2019). SMEs and junior stock markets: a comparison between European and Japanese markets. Journal of Innovation Economics & Management, 2(29), 43–67. https://doi.org/10.3917/jie.029.0043.
Gurley, J.G., & Shaw, E.S. (1967). Financial structure and economic development. Economic Development and Cultural Change, 34(2), 257–268. https://doi.org/10.1086/450226.
Harwood, A., & Konidaris, T. (2015). SME exchanges in emerging markets economies. Policy Research Working Paper, 7160. https://doi.org/10.1596/1813-9450-7160.
Hayes, A. (2022). Alternative trading system (ATS) definition, regulation. Retrieved 31.03.2023 from https://www.investopedia.com/terms/a/alternative-trading-system.asp.
Jain, P.K., Mekhaimer, M., & Mortal, S. (2020). Commonality in liquidity and multilateral trading facilities. Financial Review, 55(3), 481–502. https://doi.org/10.1111/fire.12225.
Klein, O., & Song, S. (2020). Commonality in intraday liquidity and multilateral trading facilities: evidence from Chi-X Europe. Journal of International Financial Markets, Institutions and Money, 73, 101349. https://doi.org/10.1016/j.intfin.2021.101349.
Kordela, D. (2013). NewConnect: rynek giełdowy dla małych i średnich przedsiębiorstw. CeDeWu.
Korenik, A. (2019). Alternatywne systemy obrotu giełdowego w Polsce i na świecie: wybrane przykłady. https://doi.org/10.13140/RG.2.2.20413.41443.
Kruszewski, T. (2004). Wprowadzenie do modelowania ekonometrycznego. In M. Gruszczynski, & M. Podgorska (Eds.), Ekonometria (pp. 10–11). SGH.
Majchrzak, M., & Ejsmont, A. (2023). competitiveness of small and medium-sized enterprises in the German-Polish border area in times of extraordinary threats. European Research Studies Journal, 26(1), 247–267. https://doi.org/10.35808/ersj/3109.
Mikołajczyk, B., Kurczewska, A. (2010). Rynek NewConnect w Polsce na tle innych rynków alternatywnych w Europie. e-finanse, 6(3), 64–75.
Mościbrodzka, M. (2020). Zachowania i anomalie na rynku NewConnect. Uniwersytet Wrocławski. https://doi.org/10.34616/23.21.005.
Mosionek-Schweda, M. (2014). The use of discriminant analysis to predict the bankruptcy of companies listed on the newconnect market. Equilibrium. Quarterly Journal of Economics and Economic Policy, 9(3), 87–105. https://doi.org/10.12775/EQUIL.2014.019.
NewConnect. (2022). NewConnect Statistics. Retrieved 31.03.2023 from https://newconnect.pl/statistics-periodic.
Panfil, M. (2013). Analiza porównawcza NewConnect i innych europejskich rynków alternatywnego systemu obrotu akcjami. Zeszyty Naukowe Uniwersytetu Szczecińskiego: Finanse, Rynki Finansowe, Ubezpieczenia, 63, 347–368.
PARP. (2022). Raport o stanie sektora małych i średnich przedsiębiorstw w Polsce. Retrieved 31.03.2023 from https://www.parp.gov.pl/storage/publications/pdf/Raport-o-stanie-sektora-maych-i-rednich-przedsibiorstw_13_10_2022.pdf.
Pastusiak, R. (2011). Rynki alternatywne w Europie: Londyński Alternative Investment Market a NewConnect. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 174, 293–304.
Pen, B., & Pascal, N. (2021). Multilateral trading facilities (MTFs) and organized trading facilities (OTFs). In M. Blair, G. Walker & S. Willey (Ed.), Financial markets and exchanges law (pp. 7.25–7.33). Oxford. https://doi.org/10.1093/law/9780198827528.001.0001.
Pietrzyk, R., & Knichnicki, B. (2010). Alternatywny system obrotu akcjami w Polsce na tle innych rynków europejskich. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 117, 340–350.
Radke, M. (2020). The position of NewConnect against the Alternative Markets of European countries. The impact of GDP on volatility in the indices and turnover value. Journal of Economics and Management, 40(2), 109–131. https://doi.org/10.22367/jem.2020.40.06.
Thiel, S. (2010). Rynek kapitałowy i terminowy. Retrieved 31.03.2023 from https://www.knf.gov.pl/knf/pl/komponenty/img/Rynek%20kapitalowy_25920.pdf.
Ustawa z dnia 29 lipca 2005 r. o obrocie instrumentami finansowymi [Law on trading in financial instruments] (Dz.U. 2005 nr 183 poz. 1538) (Poland).
Vismara, S., Paleari, S., & Ritter. J.R. (2012). Europe’s second markets for small companies. European Financial Management, 18(3), 352–388. https://doi.org/10.1111/j.1468-036X.2012.00641.x.
Zygmanowski, P. (2016). Rozwój rynku NewConnect w świetle założeń jego organizatora. Ruch Prawniczy, Ekonomiczny i Socjologiczny, 78(2), 217–230. https://doi.org/10.14746/rpeis.2016.78.2.18.
Zygmanowski, P. (2017). Determinanty rozwoju rynku akcji NewConnect. CeDeWu.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Izabela Zabielska, Aneta Ejsmont
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Stats
Number of views and downloads: 144
Number of citations: 0