Market Perception of Corporate Innovations

Aim. To examine the market perception of corporate innovations in Japan.

Research questions:

1. How does innovative activity relate to the market value of listed Japanese companies?
2. Which knowledge assets matter most for the Tokyo Stock Exchange?

Relevance. As most of the hitherto research on the market perception of corporate innovations has concentrated on the U.S. and Western Europe, not much attention has been paid to Japan. It matters for the following reasons:

• Japan has a third-largest market capitalization for listed companies.
• Alongside with the growing market for corporate control, Japan has distinct institutional arrangements encapsulated by the pertaining legacy of relational corporate finance and governance.

Hence, this project presents a rich material for scholars focusing on interaction between markets and institutions.