IMF: To “Unstash The Cash” in Japan, Corporate Governance Reform Needed

Abstract: Japan’s high corporate savings might be holding back growth. We focus on the causes andconsequences of the current corporate behavior and suggest options for reform. In particular,Japan’s weak corporate governance—as measured by available indexes—might becontributing to high cash holdings. Our empirical analysis on a panel of Japanese firms
confirms that improving corporate governance would help unlock corporate savings. Themain policy implication of our analysis is that comprehensive corporate governance reformshould be a key component of Japan’s growth strategy.

The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.