GuysI used to work for a fund manager and I can tell you that...

Guys
I used to work for a fund manager and I can tell you that many institutions would have limits on how much they can invest in certain companies
For example - they may be able to put 5 % in companies with market caps that are sub 500m
Similarly other instos may be looking a companies that pay dividends and thus when considering energy stocks - their universe would be limited to dividend paying stocks

So although being bigger doesn't make the company better - a bigger market cap allows it to hit the radar / investment universe of many more potential investors .

Furthermore , if the stock does get rerated and moves into the asx 100 then there will significant buying from instos also supporting the SP.

So although bigger doesn't itself create value - it does create a sense additional natural buyers and size also has an impact of the psyche of investors where bigger seems safer and better