Abstract:
In the South African context, understanding factors, which influence financial
performance, is of particular importance in lieu of slowing economic growth rates and
high levels of unemployment. The JSE Altx was developed to provide SME
organisations with access to capital markets and thereby facilitate growth. The success
of the exchange has however come under scrutiny and the value added to both
investors and entrepreneurs questioned. Continued poor performance of Altx listed
organisations may deter further listings and future investment. Research into
developing an understanding of factors that affect growth in Altx firms could provide
insights into what can improve firm performance and ensure their contribution to
national growth and competitiveness. This research determines the predictor variables,
which affect financial performance of such firms listed on the Altx. Top Management
Team (TMT) characteristics were investigated to determine how they impact firm
performance. The possible causal relationships between firms who have appointed
external CEO's and firms whose original founders are the current CEO's were also
analysed. On the organisational level ?growing pains' is hypothesised as having a
causal relationship to financial performance. The relationship between TMT
characteristics and firm level ?growing pains' was further explored at an organisational
level. The research finds that TMT characteristics influence firm level ?growing pains',
which ultimately affect the financial performance of the firms.
