IPO Listing Requirements and Firm Innovation

2019 Fiscal Year Final Research Report

• Project/Area Number: 16H05952
• Research Category: Grant-in-Aid for Young Scientists (A)
• Allocation Type: Single-year Grants
• Research Field: Money/ Finance
• Research Institution: Ritsumeikan University (2019); Nagasaki University (2016-2018)
• Principal Investigator: Yamada Kazuo 立命館大学, 経営学部, 准教授 (90633404)
• Project Period (FY): 2016-04-01 – 2020-03-31
• Keywords: イノベーション / 新規株式公開

Outline of Final Research Achievements

This research project　investigates the impact of relaxing listing standard. In Japan, young and small firms were enable to go public around 2000 due to the establishment of new stock markets for them. However, the evaluation of such deregulation is rarely investigated in previous literature.
Because firm innovation is affected by various factors, I used the matching method to eliminate the factors unrelated to going public. To do so, I accessed the Japanese Census dataset with about 400.000 firm-year observations. I find an increase of input of innovation, measured by the R&D expenses after the deregulation. However, I do not find any evidences supporting the increase of output of innovation measured by new patents and patent royalties. This implies that lowering listing standard did not contribute to the output of innovation.
Many government around the world established new stock markets for start-ups, however, the evidence suggests the impact is limited.

Free Research Field

企業金融

Academic Significance and Societal Importance of the Research Achievements

これらより、新規株式公開時におけるスクリーニングは非常に重要であることが理解できる。スクリーニングにより質の保証をするエージェントとしては証券会社やベンチャーキャピタルなどを上げる研究もある。しかしそれらは新規株式公開から利益を得る主体であることを鑑みると、証券取引所のような主体が質に関する精査をすることが重要になるといえる。
証券取引所での上場基準のあり方についての議論は日本のみならず多くの国において議論になっていることから本研究からの示唆は他国研究者、実務家に対する示唆もあると判断できる。