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Change and continuity in Japanese corporate governance

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Abstract

Previous studies on Japanese corporate governance were largely based on the agency theory framework, and can be seen as attempts to understand the unique monitoring mechanisms in the Japanese context. This paper briefly reviews prior research and then discusses the recent changes in the environment that have been affecting Japanese corporate governance. Our central argument is that there is both change and continuity in Japanese Corporate Governance. We also present emerging research from an institutional theory perspective. In this line of research, corporate governance is treated as part of a nation’s institutional framework and hence, researchers need to understand unique institutional arrangements that affect corporate governance practices and their change or continuity.

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Notes

  1. Kabushiki Bunpu Chosa (Stock distribution survey), 2004.

  2. In Asia, Japan is not alone in this regard. In China, Peng (2004) finds that outside directors do not contribute to improvement of firms’ financial performance.

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Authors and Affiliations

  1. DeGroote School of Business, McMaster University, 1280 Main Street West, Hamilton, ON, L8S 4M4, Canada

    Toru Yoshikawa

  2. E. J. Ourso College of Business, Louisiana State University, Baton Rouge, LA, 70803, USA

    Jean McGuire

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  1. Toru Yoshikawa
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  2. Jean McGuire
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Correspondence to Toru Yoshikawa.

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We would like to thank Mike Peng (Editor-in-Chief) and Chris Ahmadjian for their helpful comments on an earlier draft of this paper.

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Yoshikawa, T., McGuire, J. Change and continuity in Japanese corporate governance. Asia Pacific J Manage 25, 5–24 (2008). https://doi.org/10.1007/s10490-007-9064-1

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