The Inertia And Convergence Of The Reform Of The Japan-Style Corporate Governance

Japan -style model and U.S.-style model are two distinct styles of the Corporate Governance Theory. Japan -style model is based on the broad definition of Corporate Governance, and make stakeholders as its core consideration. While the latter is based on the narrow definition of Corporate Governance, and make the benefit of stockholders and the stimulation to managers as its core consideration.The boom of Japan economy in the last century is a hot topic of the economist, and Japan -style model is a reason of that rapid progress. However Japan economy has slipped into long stagnation when the Bubble breaks. In order to recover the economy development, Japan is going through a series of reforms. Corporate governance reform is drawing attention as one of the keys to reviving Japanese firms. And during this reform, there is some phenomenon to say that Japan -style model is becoming convergence to U.S. -style.This thesis is organized as follows. Chapter 1 reviews the literature on Corporate Governance and on the convergence in Corporate Governance. Chapter 2 introduces the emergence and development of Japan -style, which include 'the main bank relationship', 'the cross shareholding' and 'the long-term employment and seniority-based wage systems'. Chapter 3 discusses the character of Japan -style and its function, and makes a brief compare of with U.S -style. In chapter 4 I point out that Japan -style is becoming of less function because of the long stagnation, and then I explore the reasons and presentations of it in detail. As a substitute, the outsider mechanism in which the corporate pension fund of Japan is the leader, and the insider mechanism which is mainly pushed by the companies itself have developed quickly. I discuss these two mechanism in Chapter 5 and 6 respectively. Chapter 7 concludes the inertia and convergence of Japan's corporate governance reform, and I believe...