INITIAL PUBLIC OFFERING INTENTION: EVIDENCE FROM START-UP FIRMS IN JAPAN

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Yuji Honjo, Kenji Kutsuna

DOI:10.22495/cocv7i4p9

Abstract

This paper explores the initial public offering (IPO) strategy of start-up firms. Using an original survey of start-up firms in the Japanese manufacturing and information service industries, we investigate what factors are associated with the intention to go public. It is found that among start-up firms, those investing more heavily in research and development (R&D) are more likely to wish to go public. Furthermore, we provide evidence that spin-offs and family businesses are less likely to have IPO intentions, and that entrepreneur-specific characteristics affect IPO intentions, with younger and highly educated entrepreneurs tending to desire to go public.

Keywords: Entrepreneur, Initial Public Offering, New Stock Market, Research and Development, Start-up

How to cite this paper: Honjo, Y., Kutsuna, K. (2010). Initial public offering intention: evidence from start-up firms in Japan. Corporate Ownership & Control, 7(4), 127-141. http://doi.org/10.22495/cocv7i4p9