Corporate governance and ownership reforms in Japan - Essay Example

Comments (0) Cite this document
Summary
Corporate Ownership and Governance Reforms in Japan: Influence of Globalization and U.S. Legal Practice Mizuki Hayashi1 Abstract This paper is a brief summary and discussion on the recent reforms of Japanese corporations in regards to ownership and governance…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
Corporate governance and ownership reforms in Japan
Read TextPreview

Extract of sample
"Corporate governance and ownership reforms in Japan"

Download file to see previous pages The paper will review recent shareholder activism, board structure, the latest corporate scandal, and reforms in the regulative environment of Japanese corporate governance as well as judicial system reformation conducted in the past few years. The paper will also present an analysis of data collected from previous research on the effects of foreign investment in Japanese firms and the introduction and assimilation of U.S. boardroom structures to Japanese corporations. The paper will further examine the attitudes of Japanese managers, legal practitioners, and acceptance and resistance to traditional governance methods vis-a-vis the new U.S.-style forms of governance and ownership structures. Also, the paper will delve into the conflicts and tensions created by the adoption of U.S.-style shareholder activism or board structures in the corporate world among the Japanese business legal practices, and provide analysis of some of the factors involved in such frictions. Introduction The linkage between corporate ownership and governance has been studied for many decades from various angles. While this area of scholarship had largely emphasized the widely-held type of ownership2 and agency problems that arose out of it,3 corporate ownership and governance issues continue to differ worldwide even after economies or business practices have largely converged.4 As corporate activity spread across the world, scholarship has gradually started to focus on institutional and functional differences.5 Broadly speaking, the analysis of this divergence has been conducted through how corporate governance converted and persisted. While convergence optimists claim dominance toward the U.S.-type shareholder-centered model,6 the ownership structure and unique characteristics of corporate ownership and governance still remain significant. The persistence of this divergence is analyzed through the theory of complementarity in each corporate governance system.7 It is true that the global corporate governance system certainly seems to be unified both functionally and formally, despite persisting differences.8 However, as seen in the example of Japan in this paper, corporate ownership and governance are shaped by historical path-dependence, and the social norms of each country still plays an important role in corporate governance. The reformation of corporate ownership and governance in Japan after the collapse of so-called bubble economy in 1990 is a prime example of corporate governance convergence and persistence. Corporate ownership in Japan had been characterized by reciprocal cross-shareholdings among corporation and banks. Also, corporate governance in Japan has a unique character where the main bank and employee interests play a central role with insider-oriented boards. As we will see in the following chapter, this structure experienced significant change after the 1990s through dissolving cross-ownership and adopting some shareholder-oriented, Anglo-American rules of governance. While these reformations can be considered as a corporate conversion caused by globalization, many Japanese corporations still retain unique governance characteristics and adopt U.S-style rules and practices, causing conflict and tension among Japanese businesses and legal practitioners. This paper attempts to address the issue derived from corporate conversion and persistence that occurred very recently in Japan. I: Dissolution of Cross ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Corporate governance and ownership reforms in Japan Essay”, n.d.)
Corporate governance and ownership reforms in Japan Essay. Retrieved from https://studentshare.org/law/1403205-corporate-governance-and-ownership-in-japan
(Corporate Governance and Ownership Reforms in Japan Essay)
Corporate Governance and Ownership Reforms in Japan Essay. https://studentshare.org/law/1403205-corporate-governance-and-ownership-in-japan.
“Corporate Governance and Ownership Reforms in Japan Essay”, n.d. https://studentshare.org/law/1403205-corporate-governance-and-ownership-in-japan.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
CONTEMPORARY CORPORATE GOVERNANCE ISSUES
... before the interests of shareholders, therefore generating the principal-agent conflict. There are certain views regarding the convergence of corporate governance systems however such possibility is least likely to happen due to difference in corporate culture and ownership structures. In recent years many influential proposals have been made in UK regarding corporate governance such as Higgs 2003, Turnbull Committee 1999, Hampel Committee 1998, Greenbury Committee 1995 etc (Letza, Sun & Kirkbride, 2004, p.242). The legislative strategies place importance to the need of a single governance structure for the corporate world. However no single model of corporate governance has worked at all times. Presently there are four main perspectives... of...
10 Pages(2500 words)Essay
Corporate Governance and Ownership
...?Globalization and Corporate Governance in East Asia: Examples of Recent Reformations in Japan China and Singapore I. Although each corporation still remains its unique, country-specific characteristics of corporate governance, the impact of globalization gradually becomes significant on all corporations. This paper discusses how globalization brings about changes to the corporate governance in East Asia. This paper examines the recent change or governmental reformation of Japan, China and Singapore in terms of corporate...
32 Pages(8000 words)Essay
Importance of Corporate governance
...of the policy makers to the global policy related debates has grown significantly over the past few years. Increasing number of discussions among the global leaders has changed the way in which they used to think about reforms years ago. In simple words, the importance of reforms has intensified (Nestor & Thompson, n.d.). The issue of regulations and laws is very important in case of convergence of various governance systems. It is important to note that the existence of different corporate law as well as regulations regarding securities has played great role in favoring divergences among national control and ownership environments. There are experts who have...
8 Pages(2000 words)Essay
Corporate governance
...concentrated share ownership is associated with shareholder activity. The UK system of corporate governance is like the corresponding system of the US. UK as well as the US has a dispersed share ownership which contrasts other developed countries. (Gospel and Pendleton, 2003) Some scholars argue that the Anglo-American pattern of dispersed ownership was clearly inferior to the bank-centered capital markets of Germany and Japan, because the latter enabled corporate executives to manage for the long-run while U.S. managers were allegedly forced to maximize short-term earnings. (Coffee & John, 1999) In dispersed...
5 Pages(1250 words)Essay
Corporate Governance Issues
...their compensation packages, which were mostly in the form of stock options that were tied to the performance of the stock. By manipulating stock prices to secure the highest possible gain, many crossed the line. Of course, when government regulators found out, it was the shareholders who were left holding an empty bag. This was the experience not only of recent corporate scandals and blow-ups in America but of similar events in other parts of the world in the last two decades. The wave of corporate governance reforms, corporate social responsibility, socially responsible investing, pay for performance, codes and laws in the E.U., the U.S.,...
9 Pages(2250 words)Essay
A statutory response to Corporate Governance: A Critique
...of research in the examination and the analysis of this issue will offer appropriate explanations regarding the various aspects of this issue and its importance for the scientific research. The justification of the value of this issue is therefore a significant part of the research analysis related with the specific issue. Current paper focuses on the examination and the comparison of the corporate governance practices followed in UK and USA. The extensive reforms that have taken place in the particular sector have led to the development of many doubts regarding the effectiveness and the credibility of the corporate governance systems applied on these two...
14 Pages(3500 words)Essay
Law essay : corporate governance
... the past they include (McCahery, MoerLand, Reinboag, Raaijmakers. 2002, 176) Cadbury committee: In 1980s the scandal of Polly Peck, Maxwell’s Communication Group and BCCI led to reforms in UK Corporate Governance, to clarify responsibilities and duties of the board. Greenbury committee: This committee was established 1995, after a protest against the increased salaries given to directors in the new private companies. Hampel committee: This committee was formed in 1996 so as to review the Cadbury code, if it was implemented, the roles given to executive directors and also review the Greenbury Committee recommendations in their report. Lastly it was to address the role of auditors and shareholders in Corporate Governance. The Combined Code... by...
12 Pages(3000 words)Essay
Corporate Governance
...Securities Conflict Appeal Committee 107 5.4 The Saudi Stock Exchange 107 5.5 The Ministry of Commerce and Industry 108 5.6 The Accounting and Auditing Professions and the Saudi Organization for Certified Public Accountants 109 5.7 Role of Environmental Matters and Auditing in Corporate Governance 111 5.8 Saudi Ownership Structure 114 5.9 The Board of Directors in the Institutional Framework 115 5.10 The Principal Fiduciary Duties of the Board of Directors 116 5.10.1 General Overview 116 5.10.2 Duty of Care 117 5.10.3 Duty of Loyalty 118 5.10.4 Conflicts of Interest among Board of Directors 119 5.10.5 Disclosure of Information by Directors 120 5.10.5 Insider Dealing 121 5.10.6 Board’s Duty to Act...
5 Pages(1250 words)Essay
What is the state of corporate governance in the UK, USA, EU, Australia, Japan and the GCC countries
35 Pages(8750 words)Literature review
CORPORATE OWNERSHIP, GOALS, and GOVERNANCE
10 Pages(2500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Corporate governance and ownership reforms in Japan for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us