Long-termism and the Japanese Firm

One of the most commonly encountered views about the Japanese economic system is that management in Japan is ‘long-term orientated’ in the sense of being able to plan for and implement long-term investment strategies. Abegglen and Stalk (1985, p. 188) argue that ‘managements of the kaisha [Japanese business corporation] are freed from the tyranny of accountants, and from the terrible pressures throughout the U.S. organizations for steady improvement in earnings per share … The Japanese manager is able to look further into the future and is freer to do what is necessary to ensure a successful future’.