Whither Japan's Corporate Governance

31 Pages Posted: 25 Jul 2006 Last revised: 29 Sep 2009

Date Written: July 30, 2006


This paper examines the cumulative effects of gradual changes taking place in Japan's corporate landscape in general and corporate governance in particular in the past decade or so and regards it as an instance of institutional change which has not been completed yet. In order to substantiate this view, it first documents essential features of the changes and then interprets them using a game-theoretic framework of comparative corporate governance analysis. It identifies corporate governance institutions as multiple equilbria of game played between investors, managers and employees, and interprets the changes taking place in Japan as the transition from the model of Contingent Governance to that of stock market monitoring of complementary linkages between the managerial model and specific human assets of the firm.

Keywords: corporate governance, institutional change, Japanese economy, contingent governance, stock market monitoring

Suggested Citation

Aoki, Masahiko, Whither Japan's Corporate Governance (July 30, 2006). Rock Center for Corporate Governance Working Paper No. 29, Available at SSRN: https://ssrn.com/abstract=918624 or http://dx.doi.org/10.2139/ssrn.918624

Masahiko Aoki (Contact Author)

Stanford University ( email )

E314 Encina Hall
Stanford, CA 94305-6015
United States
415-723-3975 (Phone)
415-725-5702 (Fax)

HOME PAGE: http://www.stanford.edu/~aoki

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics