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Corporate Governance Convergence in Japan

  • Chapter
The Convergence of Corporate Governance

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.

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Authors
  1. Christina L. Ahmadjian
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Editor information

Editors and Affiliations

  1. University of Texas at Arlington, USA

    Abdul A. Rasheed

  2. Singapore Management University, Singapore

    Toru Yoshikawa

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© 2012 Christina L. Ahmadjian

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Ahmadjian, C.L. (2012). Corporate Governance Convergence in Japan. In: Rasheed, A.A., Yoshikawa, T. (eds) The Convergence of Corporate Governance. Palgrave Macmillan, London. https://doi.org/10.1057/9781137029560_6

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