Japan’s tarnished image for corporate governance is undergoing a polish. From its declaration as a key “third arrow” reform for Abenomics, new company law reforms, the launch of a stewardship code for investors, and promised corporate governance code in 2015, the nation’s businesses have been put on notice to improve performance or face the consequences.
Category: Governance
New UK Corporate Governance Code Coming
Article – Investors come first in the new corporate governance code, byStephen Haddrill,chief executive of the Financial Reporting Council.
2014: Translation of Nicholas Benes’ Article on Japan’s New Governance Code, in Nikkei Newspaper’s “Economics Classroom” Column
Nikkei Newspaper, “Economics Classroom” Column (8/8/2014)
( The Corporate Governance Reform Debate – Key Themes )
Independent Directors Should Make Up at Least One-Third of the Board –Promulgate a “Code”that Meets Global Standards
Bruce Aronson, Article: “The Important Role of JASBA in Japan’s Corporate Governance”
(Bruce Aronson isProfessor of Law at theGraduate School of International Corporate Strategy, Hitotsubashi University, and serves as anAdvisor at
Nagashima Ohno & Tsunematsu. This article was previously published in JASBA's magazine,Gekkan Kansayaku. )
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
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 and consequences of the current corporate behavior and suggest options for reform.
Japan Appoints a High-Quality Panel to Advise on its New Corporate Governance Code
Japan has appointed a high-quality panel to advise on the core principles of its corporate governance code. The panel include an experienced foreign board member, Scott Callon, and severalcorporate governance advocates. As well, Mats Isakkson from the OECD will serve as an advisor.
http://www.fsa.go.jp/en/refer/councils/corporategovernance/01.pdf
“Does Board Independence Improve Firm Performance? Outcome of a Quasi-Natural Experiment”
Abstract: Since 2003 the Australian Securities Exchange Corporate Governance Council (ASX) has required that all listed firms either adopt a majority of “independent” board members without links either to management or to substantial shareholders (i.e., 5% or greater shareholding) or “if not, why not”.
“Board Self-Evaluations: Practical and Legal Implications”
(Introduction) – The NYSE mandates that the boards of listed companies undertake an annual self-evaluation to determine whether they and each of their committees are functioning effectively. While Nasdaq does not impose similar requirements, companieslisted on this exchange, as a matter of good governance, often undertake thisperformance review.
Paper: “Gender Diversity and Securities Fraud”
Abstract: We formulate theory and set forth a first-ever empirical analysis of the impact of board of director gender diversity on the broad spectrum of securities fraud, generating three main insights. First, the examined data show strong evidence consistent with the view that the importance of women on boards in mitigating securities fraud lies in the mechanism of diversity itself, such that the optimalpercentage of women on boards is 50% with respect to minimizing securities fraud.