The purpose of this paper is to explain how current security market regulations in Japan have evolved following Japan’s corporate governance reforms, which began in the 1990s…
Abstract
Purpose
The purpose of this paper is to explain how current security market regulations in Japan have evolved following Japan’s corporate governance reforms, which began in the 1990s after the bursting of a massive financial bubble. As part of the reform, Japan aimed to introduce US-style corporate governance mechanisms.
Design/methodology/approach
This paper first explains the process behind Japan’s corporate governance reforms using the theory of selective adaptation. By doing so, the various changes that have taken place in the regulations of security markets are also explained. The paper concludes with a discussion of the limitations of transplanting US-style corporate governance mechanisms in Japan and the implications for the functioning of Japan’s security markets.
Findings
While applying a selective adaptation framework to Japan’s efforts to transplant US-style corporate governance mechanisms to its own markets, the author found that certain Japan-specific business practices, such as its heavy reliance on keiretsu corporate groupings, may interfere with the market-based business practices and free competition which characterize the US system. This in turn places limitations on the functioning of US-style security markets in Japan.
Originality/value
This paper explains the limitations of government regulation on security markets in Japan, which may be of interest to both public and private sector analysts. This paper focusses on Japan’s experience of transplanting US-style corporate governance mechanisms to Japan. The author expect that Japan’s experience will be of much interest to China, South Korea and other countries in East Asia, where pyramidal and other types of business groups play important roles in their economies.
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How does ownership of units of home capital affect time use? What are the determinants of ownership of home capital? The objective of this paper is to inquire into the nature of…
Abstract
How does ownership of units of home capital affect time use? What are the determinants of ownership of home capital? The objective of this paper is to inquire into the nature of these relationships.
Masao Nakamura and W. Mark Fruin
The Chinese economy, among other developing economies in Asia, has experienced extraordinary growth in the last decade. Yet, for China and other newly emerging economies in Asia…
Abstract
Purpose
The Chinese economy, among other developing economies in Asia, has experienced extraordinary growth in the last decade. Yet, for China and other newly emerging economies in Asia to grow in a sustainable manner, good corporate governance and management mechanisms must be in place. The authors aim to explore this issue in this paper. The authors also aim to particularly point out that Japan's experience both before after the Second World War will be relevant as a model for China's public and business development policy decision‐making.
Design/methodology/approach
The authors apply well‐established theories of economic development and organizational structures of business organizations to Japan's experience before and after the Second World War and then to contemporary China's experience. The analysis of Japan uses the substantial research findings on the development of that country available in the business history literature.
Findings
The paper's analysis shows multiple ways in which China and other emerging East Asian economies can take advantage of Japan's experience (which is called the Japan model here) for their own development policies and achieve sustainable growth in the long run. For example, it is expected that Japan's experiences may be relevant in areas such as: firm formation and the utility of business groups of various types; development of industrial relations and employment practices; interactions between business and government in the promotion of economic development; and how these factors relate to technology advances on a worldwide basis.
Originality/value
The findings reported in this paper also contribute marginally to the literature by considering the recent experience of Chinese private and state‐owned corporations, including international joint ventures, in the context of Japan's experience in its economic and business development history.
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W. Mark Fruin and Masao Nakamura
This paper aims to present a general review of the circumstances of America and Japan's rapid corporate, economic and industrial development in the twentieth century.
Abstract
Purpose
This paper aims to present a general review of the circumstances of America and Japan's rapid corporate, economic and industrial development in the twentieth century.
Design/methodology/approach
The approach considered and evaluated how the circumstances of America and Japan's growth might apply to China and India, two of the fastest growing economies of the twenty‐first century.
Findings
The findings suggest that both America and Japan might be considered exceptional cases and, as such, neither one might be regarded as a good model for emulation. However, the circumstances of Japan's rapid growth appear closer to those of contemporary China and India and on that basis the authors suggest that Japan might be a better model for emulation.
Originality/value
The American model is too novel and unlikely to be imitated, replicated or repeated whereas Japan's high population density, agrarian origins, state assisted and administered development, adaptation and hybridization of local and imported methods and technologies, kinship, pseudo‐kinship and locality based business groupings, and rapid, come‐from‐behind charge toward industrialization, urbanization and international emergence, all suggest that Japan offers a more relevant and useful development model.
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William L. Weber and Michael Devaney
Outlines the characteristics of Japanese keiretsu (vertically integrated firms interlinked through industrial groups) and reviews the history of financial keiretsu and associated…
Abstract
Outlines the characteristics of Japanese keiretsu (vertically integrated firms interlinked through industrial groups) and reviews the history of financial keiretsu and associated research. Compares the performance of Japanese and US banks 1989‐2000; and examines Japanese bank profit inefficiency by developing a mathematical model and applying it to 1992‐1999 bank data. Shows a “zig‐zag” pattern of profitability change over the period and concludes that the Japanese banking industry is “barely holding its own in profitability”. Points out the particular importance of this to the real economy in Japan and briefly considers the implications for government policy.
Details
Keywords
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Struggling economies provide an interesting venue for international management researchers to build and test theory. Struggling economies are characterized by conflict and…
Abstract
Struggling economies provide an interesting venue for international management researchers to build and test theory. Struggling economies are characterized by conflict and confrontation between established forces trying to impose conformity and emerging forces seeking variety. Economies once healthy, but in sustained recession, are also fertile sites for exploring the conflict between problem-solving based on traditionally, but no longer, successful strategies and new solutions brought in from outside. Struggling economies also present opportunities for examining the interaction between people and structures, where established relationships are open to question. This volume explores change in one struggling economy – Japan. In doing so, it seeks to draw from the experience of Japanese companies in extending international management theory beyond the boundaries of that one country.
In the process of fostering economic development, many governments, especially those of a small economy, such as Singapore, Taiwan, and Hong Kong, had taken a leading role in…
Abstract
Purpose
In the process of fostering economic development, many governments, especially those of a small economy, such as Singapore, Taiwan, and Hong Kong, had taken a leading role in managing their economies, in spite of the free-market rhetoric that some of them have made. The purpose of this paper is to examine the reasons and the effects of government involvement in the economy.
Design/methodology/approach
In this paper, the causes and effects of cooperation and conflict between government and business in economic development are examined from a theoretical perspective, particularly with references made to East Asian economies.
Findings
Government interventions lead inevitably to both cooperation and conflict with the private sector.
Practical implications
The strategies for dealing with problems arisen from such relationship are also examined.
Originality/value
This paper links the theories and concepts from a variety of sources to offer a coherent picture of business-government relationship that is helpful for examining other studies on this topic from a broad perspective.