Japan's Microcap Market

This paper shows that a much larger number of microcaps are listed on Japan's stock exchanges than on stock exchanges in the US and UK, considers the reasons why, and looks at the problems that result. It finds that this is not because Japan's listing standards are too relaxed, but rather because its unlisted equity markets are undeveloped. There tends to be broad support for policies that foster startups and encourage IPOs by smaller companies, but the high risks from microcaps must also be taken into account