Do innovative start-ups really wish to go public? Evidence from Japanese electrical manufacturing companies

Abstract

This paper examines whether innovative start-ups have the intention to go public. Using a sample of electrical manufacturing firms in Japan, it is found that firms investing heavily in research and development (R&D) are more likely to have the intention to go public. From the viewpoint of entrepreneurs, the result may support the trend toward the creation of new stock markets for innovative start-ups.