Japan's Paradoxical Response to the New 'Global Standard' in Corporate Governance

30 Pages Posted: 11 Sep 2007

See all articles by John Buchanan

John Buchanan

University of Cambridge - Centre for Business Research (CBR)

Simon Deakin

University of Cambridge - Centre for Business Research (CBR); European Corporate Governance Institute (ECGI); University of Cambridge - Faculty of Law

Multiple version iconThere are 2 versions of this paper

Date Written: August 2007

Abstract

We suggest, on the basis of empirical research into the implementation of recent legal reforms, that Japan is not moving inexorably towards a 'global standard' in corporate governance, based on external monitoring and a market for corporate control. Japanese corporate governance is nevertheless changing: in part as an indirect response to legal initiatives, new structures and practices are emerging, aimed at providing greater flexibility in decision-making, while retaining the organisational core of the Japanese firm. The paradoxical effect of legal reforms aimed, in large part, at transplanting the global standard, may be to renew the distinctive Japanese model of the corporation.

Keywords: Japan, corporate governance, corporate control, external monitoring, Japanese model of the corporation

JEL Classification: G3, K22

Suggested Citation

Buchanan, John and Deakin, Simon F., Japan's Paradoxical Response to the New 'Global Standard' in Corporate Governance (August 2007). ECGI - Law Working Paper No. 87/2007. Available at SSRN: https://ssrn.com/abstract=1013286 or http://dx.doi.org/10.2139/ssrn.1013286

John Buchanan (Contact Author)

University of Cambridge - Centre for Business Research (CBR) ( email )

Top Floor, Judge Business School Building
Trumpington Street
Cambridge, CB2 1AG
United Kingdom

Simon F. Deakin

University of Cambridge - Centre for Business Research (CBR) ( email )

Top Floor, Judge Business School Building
Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+ 44 1223 335243 (Phone)

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

University of Cambridge - Faculty of Law ( email )

10 West Road
Cambridge, CB3 9DZ
United Kingdom

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