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US stock market regulation has little impact on where small companies decide to list their shares, according to a report from three North American academics. The widespread perception that the US’s Sarbanes-Oxley legislation is one reason why so many international companies have chosen to list in the UK is out of touch, the report argues.

Andrew Karolyi and Rene Stulz of Ohio State University and Craig Doidge of the University of Toronto say that although the regulatory burden on smaller companies has increased thanks to Sarbanes-Oxley, there has been no marked increase in US companies seeking a foreign listing.

However, the fact that all 67 US companies listed on the Alternative Investment Market in London have floated since the introduction of Sarbanes-Oxley indicates the opposite, and the proliferation of foreign companies seeking a UK listing highlights the attractions of London.

The Independent: Small Talk: AIM is working, despite the disasters