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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.

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The European alternative to the Alternative Investment Market will be on a road show in London this week in search of new investors.

Alternext, which is owned by Euronext and hosts listings in four other European capitals, denied it will be trying to take business away from AIM.

However it will be targeting firms who wish to invest in London’s less-regulated market.

Director of listings and issuers of Alternext, Martine Charbonnier, said the greatest potential sources of companies listings on Alternext were developing countries and the US, where smaller businesses have difficulty in listing due to the heavy regulation of Sarbanes-Oxley.

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