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Selective Adaptation of Anglo-American Corporate Governance Practices in Japan

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Changing Corporate Governance Practices in China and Japan

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Abstract

This chapter applies a selective adaptation framework3 for analyzing institutional change and business practices in corporate governance in post-bubble Japan. With the economy facing near-collapse in the 1990s, Japan undertook massive corporate governance reform. The Japanese government promptly introduced new laws that put in place new institutional settings for Japan’s corporate governance. New laws and revisions of existing laws related to corporate governance, securities market transactions, and laws governing transparency and information disclosure are among the many changes made in the reform process.

“We’re worried that as the number of companies with takeover defenses increases (in Japan) it’s going to lead to an entrenchment of management and loss of the healthy pressure from shareholders on management to focus on shareholder returns.”

Marc Goldstein, representative director, Institutional Shareholder Services

An earlier version of this chapter was presented at the Law and Society Association Annual Conference in Berlin (“Law and Society in the 21st Century”), July 25–28, 2007.

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Authors
  1. Masao Nakamura
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Editors and Affiliations

  1. Institute of Asian Research and Sauder School of Business, University of British Columbia, Canada

    Masao Nakamura (Konwakai Japan Research Chair and Professor) (Konwakai Japan Research Chair and Professor)

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© 2008 Masao Nakamura

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Nakamura, M. (2008). Selective Adaptation of Anglo-American Corporate Governance Practices in Japan. In: Nakamura, M. (eds) Changing Corporate Governance Practices in China and Japan. Palgrave Macmillan, London. https://doi.org/10.1057/9780230595156_11

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