The Size and Composition of Corporate Boards in Japan

Asian Business Management, Forthcoming

FIRN Research Paper

21 Pages Posted: 10 Jan 2013

See all articles by Hiroyuki Aman

Hiroyuki Aman

Konan University

Pascal Nguyen

Neoma Business School; University of Technology Sydney (UTS); Financial Research Network (FIRN)

Date Written: May 15, 2012


We analyse the structure of corporate boards in Japan to determine whether they are matched to each firm’s specific needs. Consistent with US findings, our results show that board size is positively related to firm size and firm complexity, and negatively related to monitoring costs. However, board independence appears to be unrelated to most firm characteristics. This suggests that Japanese boards are not optimally structured to carry out their role of advising and monitoring the firm. By closing their doors to outsiders and choosing to rely on their internal managerial resources, Japanese firms could be missing an opportunity to enhance their decision-making processes.

Keywords: corporate governance, board independence, outside directors, monitoring, foreign ownership, decision-making

JEL Classification: G30, G34

Suggested Citation

Aman, Hiroyuki and Nguyen, Pascal, The Size and Composition of Corporate Boards in Japan (May 15, 2012). Asian Business Management, Forthcoming; FIRN Research Paper. Available at SSRN:

Hiroyuki Aman

Konan University ( email )

8-9-1 Okamoto Higashinadaku
Kobe 658-8501
United States

Pascal Nguyen (Contact Author)

Neoma Business School ( email )

1 Rue du Maréchal Juin
Mont Saint Aignan Cedex, 76825
+33 2 3282 5774 (Phone)

University of Technology Sydney (UTS) ( email )

15 Broadway, Ultimo
+61 2 9514 7718 (Phone)
+61 2 9514 7711 (Fax)


Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane


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