Abstract.We analyse the structure of corporate boards in Japan to determine whether they are matched to each firm’s specific needs. Consistent with US findings, our results show that board size is positivelyrelated to firm size
and firm complexity, and negatively related to monitoring costs. However, board independence appears to be unrelated to most firm characteristics. This suggests that Japanese boards are not optimally structured to carry
out their role of advising and monitoring the firm. By closing their doors to outsiders and choosing to rely on their internal managerial resources, Japanese firms could be missing an opportunity to enhance their decisionmaking
processes.
byHiroyuki Aman and Pascal Nguyen
http://bdti.mastertree.jp/f/obkfe3yg
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.