Japan's Gradual Transformation in Corporate Governance

Abstract

Japan has recovered from a 'lost decade' of economic stagnation over the 1990s. Anyway, it has been a 'found decade' for civil and criminal justice law reform, especially in corporate and securities law. Yet, have liberalisation and globalisation in those fields led to major changes in the 'law in action'? Does this represent 'Americanisation' of Japan's corporate governance system, focusing on shareholders rather than other key stakeholders such as 'main banks', core employees, and partners within diffuse corporate groups (keiretsu)? This version of our introductory chapter explains how our forthcoming book argues for a more complex 'gradual transformation'. Such shifts are also found in many other post-industrial economies, but Japan appears to give greater emphasis to certain modes of achieving change. The book brings together contributions from academics and practitioners from Japan, Australia, New Zealand, Canada and the United States. An early chapter introduces methodology for effective cross-country comparisons and for evaluating the burgeoning but divergent literature on Japanese corporate governance. The concluding chapter compares continuities and changes in Japan's largest companies now and two decades ago. Other chapters cover 'lifelong employment', main banks, the untold story of closely-held companies, the limited uptake of the Committee-based governance form, and the procedural, substantive and FDI policy dimensions of takeovers law and practice.

Keywords: Corporate governance, corporate law, securities regulation, Japanese law, Asian law, comparative law

JEL Classification: G38, G30, K22, K10, K30