Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top
Published in:
Financial Management Under Uncertainty: An Introduction Read chapter Read first chapter

2023 | OriginalPaper | Chapter

Corporate Governance and Corporate Performance: Case Study Japan

Authors : Clemens Kustner, Silke Waterstraat

Published in: Finance in Crises

Publisher: Springer Nature Switzerland

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

After the bursting of the stock market bubble at the end of the 1980s Japan began to comprehensively reform its corporate governance system. Modernising Japan’s corporate governance system was seen as one of the key levers to making Japanese companies more profitable, faster growing and less risk-prone, with the overarching goal of revitalising the Japanese economy in the long term.
The first phase of the reform lost some of its momentum in the wake of the great financial crisis that broke out in 2008. Prime Minister Abe then pushed the reform process forward again with vehemence from 2012 onwards. Abe’s reform efforts encompassed several elements, such as the reform of company law and the introduction of a corporate governance code and a stewardship code. At the same time, the Tokyo Stock Exchange has influenced the corporate governance of Japanese companies through its listing rules.
From a regulatory perspective, the Japanese corporate governance system can be described as modern and efficient. However, corporate practice often lags behind. The Fujitec case study at the end of this chapter shows two things: first, how lacking the actual practice of corporate governance can be despite good rules. Second, it shows how determined shareholders today have the power to protect their interests and ensure that Japan’s modern corporate governance rules are brought to life, to the benefit of employees, shareholders and the Japanese economy as a whole.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

inform now
previous chapter Internal Control System (ICS) in Times of Crises: Theoretical and Practical Approaches—The Proactive and Reactive Role of the ICS in Switzerland
next chapter Controlling of the Circular Economy
Literature
Aoki, M., Patrick, H., & Sheard, P. (1994). The Japanese main bank system: An introductory overview. In M. Aoki & H. Patrick (Eds.), The Japanese main bank system: Its relevance for developing and transforming economies (pp. 3–50). Oxford University Press.
Arikawa, Y., & Miyajima, H. (2007). Relationship banking in post-bubble Japan: Coexistence of soft- and hard-budget. In M. Aoki, G. Jackson, & H. Miyajima (Eds.), Corporate Governance in Japan: Institutional change and organizational diversity (pp. 51–78). Oxford University Press.CrossRef
Bloomberg. (2023). Share Price Graph Fujitec. Retrieved April 27, 2023, from Bloomberg Terminal.
Buchanan, J., Chai, D. H., & Deakin, S. (2014). Agency theory in practice: A qualitative study of Hedge fund activism in Japan. Corporate governance: An international review, 22(4), 296–311.CrossRef
Fujita, K., & Yamada, A. (2022). Conflicts between parent company and non-controlling shareholders in stakeholder-oriented corporate governance: Evidence from Japan. Journal of Business Economics and Management, 23(2), 263–283.CrossRef
Fukao, K. (2003). Japan’s lost decade and its financial system. World Economy, 26(3), 365–384.CrossRef
Gilson, R. J., & Milhaupt, C. J. (2005). Choice as regulatory reform: The case of Japanese corporate governance. American Journal of Comparative Law, 53, 343–377.CrossRef
Goto, G. (2018a). Recent boardroom reforms in Japan and the roles of outside/independent directors. In H. Oda (Ed.), Comparative Corporate Governance: The case of Japan, Journal of Japanese Law, Special Issue 12 (pp. 33–53). Carl Heymanns Verlag. Retrieved April 28, 2023, from https://​ssrn.​com/​abstract=​3272634
Goto, G., Matsunaka, M., & Kozuka, S. (2017). Japan’s gradual reception of independent directors: An empirical and political-economic analysis. In D. W. Puchniak, H. Baum, & L. Nottage (Eds.), Independent directors in Asia (pp. 135–175). Cambridge University Press.CrossRef
Hamao, Y., & Matos, P. (2018). U.S.-style investor activism in Japan: The first ten years? Journal of the Japanese and International Economies, 48, 29–54.CrossRef
Hoshi, T. (1997). Benefits and costs of Japanese system of corporate governance. Global Economic Review, 26(3), 77–95.CrossRef
Jacoby, S. M. (2005). The embedded corporation: Corporate governance and employment relations in Japan and the United States. Princeton University Press.
Jackson, G., & Miyajima, H. (2007). Introduction: The diversity and change of corporate governance in Japan. In M. Aoki, G. Jackson, & H. Miyajima (Eds.), Corporate governance in Japan: Institutional change and organizational diversity (pp. 3–6). Oxford University Press.
Johnston, A., & Miyamoto, K. (2022). Independent directors and team production in Japanese corporate governance. Asian Journal of Law and Society, 1–34.
Kachi, H., & Miyazaki, J. (2007, August 8). Japanese court stymies fund’s bid for Bull-Dog; Steel Partners loses appeal to overturn poison-pill defense. The Wall Street Journal Asia, p. 16.
Kato, K., Li, M., & Skinner, D. (2017). Is Japan really a “buy”? The corporate governance, cash holdings and economic performance of Japanese companies. Journal of Business Finance & Accounting, 44(3&4), 480–523.CrossRef
Kwon, S. (2006). Strategic determinants of employment systems: An examination of corporate governance effect on employment policies in Japan and the United States. [Dissertation, Cornell University Graduate School].
Learmount, S. (2002). Corporate governance. What can be learned from Japan? Oxford University Press.
Litt, D. (2015). Japan’s new corporate governance code: Outside directors find a role under ‘abenomics’. The Corporate Governance Advisor, 23(3), 19–23.
Matsunaka, M. (2018). Politics of Japanese Corporate Governance Reform: Politicians do Matter. Berkeley Business Law Journal, 15(1), 155–184.
Milhaupt, C. (2002). On the (fleeting) existence of the main bank system and other Japanese economic institutions. Law and Social Inquiry, 27(2), 425–437.CrossRef
Milhaupt, C. (2006). A lost decade for Japanese corporate governance reform? What has changed, what hasn’t, and why? In M. Blomström & S. La Croix (Eds.), Institutional change in Japan (pp. 109–131). Routledge.
Milhaupt, C. (2017, October 31). Evaluating Abe’s third arrow: How significant are Japan’s recent corporate governance reforms? Columbia Law and Economics Working Paper No. 561. Retrieved May 25, 2023, from https://​ssrn.​com/​abstract=​2925497
Miwa, Y., & Ramseyer, J. M. (2005). The multiple roles of banks? Convenient tales from modern Japan. In K. Hopt, E. Wymeersch, H. Kanda, & H. Baum (Eds.), Corporate governance in context: Corporations, state, and markets in Europe, Japan, and the US (pp. 527–566). Oxford University Press.
Miyajima, H. (2022). Corporate governance reform, and ownership, and control: Perspective from Japan. Asian Journal of Political Science, 30(3), 260–272.CrossRef
Miyamoto, K. (2019). The evolution of the monitoring board in Japan: How the board performs monitoring function in Japanese corporate governance. Corporate Governance, 19(5), 999–1014.CrossRef
Morck, R., & Nakamura, M. (1999). Banks and corporate control in Japan. The Journal of Finance (New York), 54(1), 319–339.
Nakada, T., & Witty, T. (2015). New rules on corporate governance in Japan. Zeitschrift für Japanisches Recht (ZJAPANR), 39, 199–208.
Ong, B. (2023). On markets. Retrieved May 19, 2023, from Bloomberg US TV, NSN RUVNGXDWRGG1.
Sano, H. & Taniguchi, T (2022. Fujitec sinks as Uchiyama named firm Chairman over Oasis concern. Bloomberg. Retrieved April 26, 2023, from Bloomberg NSN RDYIDCT1UM1H.
Seagrim, J. (2022a). Hello Kitty Goes To China and DeNA Hello Kitty Goes To China: JAPAN 29vi22. CLSA.
Seagrim, J. (2022b). The Pantomime Is Ending But The Activist Show Will Run & Run: JAPAN 5viii22. CLSA.
Seagrim, J. (2023a). Pistols At Dawn... Or Presentations at Teatime: JAPAN 18iv23. CLSA.
Seagrim, J. (2023b). Pretend, Just Like Keisei Does, That Mickey Mouse Doesn’t Actually Exist: JAPAN 4vi23. CLSA.
Seagrim, J. (2023c). The Kanagawa-san Memorial Basket: JAPAN 5i23. CLSA.
Shishido, Z. (2000). Japanese corporate governance: The hidden problems of corporate law and their solutions. Delaware Journal of Corporate Law, 25(2), 189–234.
Shishido, Z. (2001). Reform in Japanese corporate law and corporate governance. Current changes in historical perspective. The American Journal of Comparative Law, 49, 653–678.CrossRef
Spiegel, T. (2017a). Independent directors in Japan: Changing corporate governance? Zeitschrift für Japanisches Recht (ZJAPANR), 23(46), 85–129.
Spiegel, T. (2017b). Independent directors in Japan: Die japanische Corporate Governance und effektives Monitoring aus rechtsvergleichender Sicht. Mohr Siebeck.CrossRef
Tokutsu, A. (2019). Do corporate law reforms increase profitability? The Japanese context. Zeitschrift für Japanisches Recht (ZJAPANR), 23(46), 111–126.
Waldenberger, F. (2017). ‘Growth oriented’ corporate governance reform – Can it solve Japan’s performance puzzle? Japan Forum, 29(3), 354–374.CrossRef
Yanagi, R. (2018). Corporate governance and value creation in Japan. Springer.CrossRef
Metadata
Title
Corporate Governance and Corporate Performance: Case Study Japan
Authors
Clemens Kustner
Silke Waterstraat
Copyright Year
2023
Book
Finance in Crises

Print ISBN: 978-3-031-48070-6

Electronic ISBN: 978-3-031-48071-3

Copyright Year: 2023

DOI
https://doi.org/10.1007/978-3-031-48071-3_7