Japan's Paradoxical Response to the New 'Global Standard' in Corporate Governance
30 Pages Posted: 11 Sep 2007
Date Written: August 2007
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: Suggested Citation