The Effects of Reforming Board Meetings on Firm Productivity in Japan

Author Name KIM YoungGak  (Senshu University) /KWON Hyeog Ug  (Faculty Fellow, RIETI)
Creation Date/NO. December 2015 15-J-060
Research Project Analysis on Service Industries: Productivity, Economic Welfare, and Policy Evaluation
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Using firm level panel data taken from the Basic Survey of Japanese Business Structure and Activities between 2005 and 2010, we examine the effects of reforming board meetings on firm productivity. We find that the probability of reforming board meetings is higher in subsidiary firms and large firms. We also document that the existence of outside directors is positively correlated with firms' productivity growth, whereas the total factor productivity (TFP) post- board meeting reform does not improve significantly in the case of controlling for endogeneity.