Abstract
This chapter discusses the employees’ attitudes to changing corporate governance. Although Japanese employees have been characterized by their cooperative relationships with management based on the stakeholder-oriented corporate governance, change to shareholder orientation may dissolve their cooperation. This may erode competitiveness of Japanese firms. While survey data shows that employees present an unexpectedly high ratio of the approval for increasing shareholder value, regression analysis demonstrates that they consider shareholder value as similar to corporate value to be shared with employees as well as shareholders; Japanese employees convince stakeholder-based management even under changing corporate governance. We further found that employees recognize the necessity to strengthen the monitoring by shareholder on facing poor corporate performance and seek monitoring by employee themselves when perceiving long-term employment not to be maintained. In short, Japanese employees want to participate in corporate governance together with shareholders to increase corporate value and protect stakeholder orientation, as is the German counterparts. However, there is no such institutional mechanism in Japan. We address that this is a true challenge for the Japanese corporate governance reform.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Aoki, M. (1988). Information, incentives and bargaining in the Japanese economy. Cambridge: Cambridge University Press.
Buchanan, J., & Deakin, S. (2009). In the shadow of corporate governance reform: Change and continuity in managerial practice at listed companies in Japan. In H. Whittaker & S. Deakin (Eds.), Corporate governance and managerial reform in Japan (pp. 28–69). Oxford: Oxford University Press.
Dore, R. (2000). Stock market capitalism: Welfare capitalism. Oxford: Oxford University Press.
Gordon, J. N. (2007). The rise of independent directors in the United States, 1950–2005: Value and stock market prices. Stanford Law Review, 59(April), 1465–1568.
Gospel, H., & Pendleton, A. (2006). Corporate governance and labor management: An international comparison. Oxford: Oxford University Press.
Hirota, S. (2012). Corporate finance and governance in stakeholder society: Beyond shareholder capitalism. London: Routledge.
Hirota, S. (2015). Corporate finance and governance in stakeholder society: Beyond shareholder capitalism. London: Routledge.
Itami, K. (2000). The Japanese-style of corporate governance. Tokyo: Toyokeizai-shinposha. (in Japanese).
Jackson, G., Mopner, M., & Kurdelbusch, A. (2006). Corporate governance and employees in Germany: Changing linkages, complementarities, and tensions. In H. Gospel & A. Pendleton (Eds.), Corporate governance and labour management: An international comparison (pp. 84–121). Oxford: Oxford University Press.
JILPT. (2010). Survey research on the current situations and issues of human resource management (Research series No.68). Tokyo: Japan Institute for Labour Policy and Training (in Japanese)
Kambayashi, R., & Kato, T. (2012). Trend in long-term employment and job security in Japan and the United States: The last twenty-five years (Working paper series, no. 302). New York: Center on Japanese Economy and Business, Columbia University.
Kato, T. (2001). The end of lifetime employment in Japan?: Evidence from national surveys and field research. Journal of the Japanese and International Economies, 15(4), 489–514.
Kato, T., & Morishima, M. (2002). The productivity effects of participatory employment practices: Evidence from new Japanese panel data. Industrial Relations, 41(4), 487–520.
Koike, K. (1988). Understanding industrial relations in modern Japan (Trans. M. Sako). London: Macmillan Press.
Koike, K. (2013). The birth of competent workshop, Tuyoi genba no tanjyo. Tokyo: Toyokeizai-shinposha (in Japanese)
Koike, K. (2015). Why do Japanese firms discard their own advantages. Tokyo: Toyokeizai-shinposha. (in Japanese).
Koike, K. (2018). The fallacy of the corporate governance reform. Tokyo: Nihonkeizai-shinbunsha. (in Japanese).
Marsden, D. (2010). Individual voice in employment relationships: A comparison under different collective voice regimes. CPE discussion paper no.1006, Center for Economice Performance, London: LSE.
Roe, M. (1994). Strong managers weak owners: The political roots of American finance. Princeton: Princeton University Press.
Tokyo Stock Exchange. (2017). White paper on corporate governance 2016. Tokyo (in Japanese)
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2018 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Miyamoto, M. (2018). How Are Japanese Employees Reacting to Changing Corporate Governance?. In: The new Japanese Firm as a Hybrid Organization. Evolutionary Economics and Social Complexity Science, vol 16. Springer, Singapore. https://doi.org/10.1007/978-981-10-8851-3_5
Download citation
DOI: https://doi.org/10.1007/978-981-10-8851-3_5
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-8850-6
Online ISBN: 978-981-10-8851-3
eBook Packages: Economics and FinanceEconomics and Finance (R0)