Impact of UK's social stock exchange trading scheme on the performance of social enterprises

Abstract Using a difference‐in‐differences (DID) framework, we evaluate the effect of UKSSE Trading scheme 2015—launch of stock trading by UK social stock exchange (UKSSE) for social enterprises (SEs) that became its members, on the productivity of UKSSE member‐firms (treated group) as compared to nonmembers (control group) for the 2008–2014 and the 2015–2018 periods, before and post the implementation of the UKSSE trading scheme 2015. Our findings suggest significant positive impact of UKSSE trading scheme opening on the productivity of all SEs (treated group) for 2 years and SEs‐SMEs (treated group) for 3 years, respectively, following the launch of this trading scheme, compared to the control groups. Thus, the UKSSE, through its trading scheme 2015, accomplished its role as a means to improve the performance of its members, measured by productivity.