The Evolution of Corporate Governance in Japan

Table of Contents

By examining several key variables concerning corporate governance, Miyajima and Arikawa examine the evolutionary process of corporate governance arrangements in Japan from the 2000s to the early 2020s.

Japanese corporate governance has become more market-oriented and this book illustrates the impact of the change on corporate behavior including business diversification, restructuring, and corporate misconduct. This volume looks at how Japanese firms have evolved from cross-shareholding between firms and banks to a more shareholder-oriented system, with an expanding role for outside directors and, more importantly, large holdings by institutional shareholders (including activist and buyout funds). The notion of hybridization, which is one of the key concepts of this book, enhances the understanding of the evolution of corporate governance in Japan. As financial markets continue to globalize and institutional shareholders gain influence, firms in in civil law jurisdictions or coordinated market economies may find the book’s discussion of hybridization of interest.

An essential read for scholars in finance, management and organization as well as market participants and lawyers who wish to understand the current Japanese economy from a practical perspective.

chapter 1: Overview of the Evolution of Corporate Governance
chapter 2: The Bank-Firm Relationship after the Creation of Megabanks
chapter 3: The Role of Foreign Institutional Investors in Corporate Governance
chapter 4: Employee Stock Ownership in Japan
chapter 5: Current State and Analysis of Corporate Governance Reforms in Japan
chapter 6: Board Evolution in Japan in the Last 20 Years
chapter 7: The Effects of Opening Up All-Insider Boards on Firm Value and CSR
chapter 8: Empirical Analysis of Public-to-Private Management Buyouts of Japanese Companies
chapter 9: Private Debt Restructuring and Alternative Dispute Resolution in Japan
chapter 10: Have Large Firms in Japan Become More Likely to Have Fewer Employees?
chapter 11: Agency Hazards and the Value of Corporate Diversification in Japan
chapter 12: Corporate Governance and Financial Misconduct
chapter 13: Impact of Organizational Culture on Corporate Fraud
chapter 14: Corporate Social Responsibility in Context
chapter 15: ESG Investment and Its Impact on Japanese Companies
chapter 16: Corporate Governance, Employment, and Financial Performance of Japanese Firms