Shareholding by Venture Capitalists and R&D Investment in the Pre- and

In this thesis, we will analyze the effect of IPOs on R&D investment and argue a change in the role of VC in the pre- and post-IPO periods for Japanese firms. It can be stated that the shareholding by VC mitigates the financial constraints of firms and is positively correlated with their R&D investment in the pre-IPO period; however, this effect disappears in the post-IPO period. In addition, it can be assumed that financial constraints are released and informational asymmetries are reduced by IPOs. Thus, R&D investment is influenced by IPOs. * I am deeply indebted to my doctoral dissertation advisers, Professors Hiroyuki Okamuro and Sadao Nagaoka, for their counsel and guidance. 2 1