Corporate Governance and Law Reform in Japan: From the Lost Decade to the End of History?

Nottage, Luke; Wolff, Larry

doi:10.1057/9780230523289_7

Cited by 11 publications

(8 citation statements)

References 42 publications

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“…This appears the case currently in particular for Japanese companies adopting management practices from the USA. This involves HRM (Matanle, 2003; Pudelko, 2004b, 2005b) but also, among others, corporate governance (Nottage and Wolff, 2005), corporate finance (Abegglen, 2005) and corporate strategy (Katz, 1998). Also German corporations seem to orient themselves towards American management practices in the area of HRM (Pudelko, 2004a) and elsewhere (Dore, 2000).…”

Section: Discussionmentioning

confidence: 99%

A comparison of HRM systems in the USA, Japan and Germany in their socio‐economic context

Pudelko

2006

Human Res Mgmt Journal

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This article provides a comparative analysis of the HR practices of American, Japanese and German companies. The starting point is an investigation of the managerial, economic, socio‐political and cultural contexts of the three HR systems. It will be demonstrated that the socio‐economic contextual factors of the American and Japanese HR systems are in many ways at opposite ends of the spectrum, with the German factors in between. Subsequently, the three HR systems themselves are analysed. The data show that the same pattern, USA and Japan at the extremes and Germany taking a middle position, is valid also for the HR systems. This suggests that the relevant socio‐economic context is highly pertinent for the establishment of an HR system. This outcome does not exclude either the integration of HR practices from a foreign HR model into the domestic one or standardisation efforts of HR practices of multinational companies, but confines the potential for cross‐cultural learning and standardisation to what is within the ‘fit’ of the relevant socio‐cultural context.

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Section: Discussionmentioning

confidence: 99%

A comparison of HRM systems in the USA, Japan and Germany in their socio‐economic context

Pudelko

2006

Human Res Mgmt Journal

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“…(Aoki, Jackson, Miyajima, 2017, p. 321-2). Proponents of this model believe that it should create the competitiveness of the two governance systems, giving the market the opportunity to choose more efficiently, which will affect the improvement of corporate governance (Nottage, Wolff, 2005).…”

Section: Discussionmentioning

confidence: 99%

“…Proponents of this model believe that it should create competitiveness between the two governance systems, giving the market the opportunity to choose more effectively, which of them will effect improvement in corporate governance (Nottage, Wolff, 2005). However, it must be remembered that it is also a hybrid governance structure having some weaknesses.…”

Section: A Company With Three Committees (3c) -The Iinkai Systemmentioning

confidence: 99%

The board as an example of Japanese corporate governance system hybridization: An outline of the problem

Jerzemowska¹,

Koyama²

2020

Economics &Amp; Sociology

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This paper argues that hybridization is a process that has been going on for decades in Japan and has contributed to improvement of Japanese corporate governance, and that the regulations regarding the board of directors are a good example of this hybridization process. The paper outlines the main changes within Japanese corporate governance system and identifies their determinants. Three main waves of hybridization of Japanese regulations and corporate governance are identified, along with three functioning structures of Japanese boards, and their strong and weak points. The company with statutory auditors (with Kansayaku Board), the company with Three Committees-nomination, audit, and remuneration-and the company with an Audit and Supervisory Committee are presented as evidence of this hybridization process. The paper addresses the research question: why has hybridization rather than convergence resulted in an improvement of Japanese corporate governance? The method of critical analysis is applied to academic literature sources, legal acts, and corporate governance regulations. The article contributes to a reduction in the research gap in Polish academic literature in the field of Japanese corporate governance, especially with respect to Japanese boards.

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“…Before September 2008, many observers describe a de facto convergence on the Anglo-American governance model reasoning that the purported economic efficiency of that model will motivate governments to adopt legal structures to emulate its norms (Hansmann and Kraakman, 2001). In Japan, this motivated firms such as Sony and Hitachi to create Anglo-American governance institutions within the laws that then existed there, and foreign shareholders exerted influence to revise corporate governance practices (Deakin and Whittaker, 2009;Ahmadjian, 2003;Nottage and Wolff, 2005). However, the question of whether the adoption of a different corporate governance system results in demonstrably differential corporate value to thus drive convergence remains incompletely addressed.…”

Section: Introductionmentioning

confidence: 99%

Corporate governance systems and firm value: empirical evidence from Japan's natural experiment

Eberhart

2012

Journal of Asia Business Studies

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Purpose -This paper aims to present evidence that the adoption by Japanese firms of a shareholder-oriented, more transparent, system of corporate governance creates greater corporate value in comparison to the traditional system of statutory auditors.Design/methodology/approach -This study uses panel data of Tokyo Stock Exchange listed companies to explore the potential convergence of corporate governance systems by examining the value differences between Japanese firms selecting one of two legal systems. A random-effects panel regression is used to analyze the data. The dependent variable of the study is Tobin's q.Findings -This paper finds a significant increase in firm valuation, as measured by Tobin's q, for companies that adopted the alternative of the Anglo-American type committee system, even though comparative financial data show little difference in performance after adoption. This finding is attributed to signal sending, as companies that adopted this system signal a choice toward transparency via monitoring by outsiders, suggesting a reduction of asymmetric agency costs. The paper finds that the committee corporate governance system produces higher corporate value than the traditional auditor governance. The study also finds evidence that it is the signal provided by adoption of the credible system, not the financial performance variables, that accounts for this difference. Social implications -The data support the central idea that corporate governance laws have consequences and encourages additional study of the effects of corporate signaling and the consequences of increased shareholder orientation of agents.Originality/value -This paper takes advantage of the unique opportunity afforded by Japan's introduction of a dual system of corporate governance in 2003, when companies were offered a choice to adopt a new system of outside directors, which is a shareholder-oriented committee system. It establishes that firm value can be created by a signal that corporate governance provides.

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Corporate Governance and Law Reform in Japan: From the Lost Decade to the End of History?

Cited by 11 publications

References 42 publications

A comparison of HRM systems in the USA, Japan and Germany in their socio‐economic context

A comparison of HRM systems in the USA, Japan and Germany in their socio‐economic context

The board as an example of Japanese corporate governance system hybridization: An outline of the problem

Corporate governance systems and firm value: empirical evidence from Japan's natural experiment

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