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Corporate Governance Convergence in Japan

  • Christina L. Ahmadjian

Abstract

Corporate governance in post-war Japan contrasted sharply with the Anglo-American system. Insiders dominated boards of directors. Main banks, business partners, and other friendly shareholders held shares of publicly traded firms, protecting them from the threat of hostile takeover. Firms relied on close and long-term relationships with main banks for financing. Corporate executives strove to balance the needs and demands of employees, suppliers, buyers, customers and sodety, and saw the company as a community — rather than a means to maximize shareholder value (Dore, 2000; Learmount, 2002; Schaede, 1994). It is not that firms ignored their shareholders; rather, share-holders were buyers, suppliers, banks, and other long-term partners, interested in the long-term health of the firm rather than short-term investment gains.

Keywords

Corporate Governance Independent Director Audit Committee Stock Option Board Size 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Christina L. Ahmadjian 2012

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  • Christina L. Ahmadjian

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