The UK Alternative Investment Market - Ethical Dimensions

Christine Mallin, Kean Ow-Yong

    Research output: Contribution to journalArticle

    14 Citations (Scopus)


    The UK Alternative Investment Market (AIM) was launched in 1995 and has been a great success with over 1200 companies now listed. In this article, we examine the development of AIM as it reaches its 15th year and discuss the potential pitfalls of the light touch regulation that is one of the attractions of AIM and identify potential corporate governance and ethical issues that may arise as a result of light touch regulation. We examine the central role of the nominated advisor (NOMAD) and draw on the findings of in depth interviews with 25 AIM participants including AIM company directors, institutional investors, nominated advisors and brokers. We highlight the influence of the NOMAD on these participants and potential governance and ethical implications. We also discuss some of the concerns that AIM participants have about the market. We examine some of the recent scandals on AIM to determine why these scandals occurred - were they, for example, attributable to corporate governance weaknesses? Finally, we offer some concluding comments to discuss the future of AIM. The findings of the article have important implications for investors and policymakers alike.
    Original languageEnglish
    Pages (from-to)223-239
    Number of pages17
    JournalJournal of Business Ethics
    Issue number2 Supplement
    Publication statusPublished - 1 Sept 2010


    • junior stock exchanges
    • second tier markets
    • institutional investors
    • Alternative Investment Market
    • ethical issues
    • corporate governance


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