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The Impact of Top Management Team Characteristics on Firms Growth

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Abstract
This study attempts to identify the factors affecting the growth of companies listed on the Alternative Investment Market (AIM), the London Stock Exchange’s market dedicated to young and growing companies. We investigate the post IPO growth of a panel consisting of 665 companies listed on the AIM from 1995 to 2006. Our empirical model is estimated using the GMM - System (GMM - SYS) estimator. Our findings confirm that small companies listed on the AIM grow at a faster rate after the IPO. It seems that both human capital and firm characteristics are important determinants of their fast growth. The results of this study carry some policy implications. Policy makers could take into account the relevance of an efficient financial system. Moreover, it is important to look at the process of transformation in the cultural and behavioural attitudes of many countries towards entrepreneurship.

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  • Colombelli, Alessandra, 2014. "The Impact of Top Management Team Characteristics on Firms Growth," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201412, University of Turin.
    • Handle: RePEc:uto:labeco:201412
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