Book contents
- The Political Economy of the Abe Government and Abenomics Reforms
- The Political Economy of the Abe Government and Abenomics Reforms
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Contributors
- Acknowledgments
- Abbreviations
- Part I Introduction
- Part II Political Context
- Part III Macroeconomic Policy
- Part IV Third Arrow of Abenomics
- 10 Abe’s Slight Left Turn
- 11 Abe’s Womenomics Policy
- 12 Corporate Governance Reforms under Abenomics
- 13 Abenomics and Japan’s Entrepreneurship and Innovation
- 14 Japanese Agricultural Reform under Abenomics
- 15 The Politics of Energy and Climate Change in Japan under the Abe Government
- Part V Foreign Policy
- Index
- References
12 - Corporate Governance Reforms under Abenomics
The Economic Consequences of Two Codes
from Part IV - Third Arrow of Abenomics
Published online by Cambridge University Press: 05 February 2021
Book contents
- The Political Economy of the Abe Government and Abenomics Reforms
- The Political Economy of the Abe Government and Abenomics Reforms
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Contributors
- Acknowledgments
- Abbreviations
- Part I Introduction
- Part II Political Context
- Part III Macroeconomic Policy
- Part IV Third Arrow of Abenomics
- 10 Abe’s Slight Left Turn
- 11 Abe’s Womenomics Policy
- 12 Corporate Governance Reforms under Abenomics
- 13 Abenomics and Japan’s Entrepreneurship and Innovation
- 14 Japanese Agricultural Reform under Abenomics
- 15 The Politics of Energy and Climate Change in Japan under the Abe Government
- Part V Foreign Policy
- Index
- References
Summary
Corporate governance reform was one of the central issues in the “third arrow” of the Abe administration’s economic revival program. The Japanese Stewardship Code was introduced in 2014, followed by the Corporate Governance Code in 2015. This chapter quantifies how the reform changed the corporate governance of Japanese firms. Firstly, we examine the changes in institutional ownership, cross-holdings, and board structure following the reforms. Then we study whether changes in ownership structure and board structure affect the firm behavior and performance. We find that the introduction of the Stewardship Code is associated with more institutional ownership, especially in mid-sized firms. Firms with few outside directs increase the number of outside directors to follow the Corporate Governance Code. However, the increase in institutional ownership and outside directors do not promote risk-taking behavior and improve firm performance.
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- Information
- Publisher: Cambridge University PressPrint publication year: 2021
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