Corporate Governance in Japan

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Explain how country characteristics, law, and

culture shape corporate governance. Select one country which

characteristics you can explain in corporate governance. (History

of Corporate Governance around the World: Family Business Groups

to Professional Managers by editor Morck, Randall K.

corporate governance examples at the book from France, India, USA,

Canada, China, Germany, Italy, Japan, the Netherlands, Sweden,

UK – you can alternatively also choose an example from any other

country too like FINLAND for example)

/ 5 points

Japan is a country of my interest which had changing
corporate governance history in different time-line affected by history, law and culture. Having a collectivist culture Japan was a conservative country which were not interested in any other systems in the outside world. And businessmen of that time were not considered a top class. After the bombardment of Japan by Americans and opening of market to foreigners there were

significant steps on the development of corporate governance. While the isolationist culture wanted Japanese best students to learn and report back Western economic systems to defeat them back on creating isolationist Japan, the Meiji government

implemented best practices of Western systems; first step onto the development of corporate governance. The state-owned
enterprises to bring Western industry to Japan and privatization

bringing about family pyramids controlling major corporations.

During 1930s-1945 Japan led by fascist military,
implemented Soviet system meaning central planning system for everything. The ownership of major families and corporations still remained however with little dividends.

Japan's losing the WW II and post-war period

corporate governance culture more like American system as it was

initially under Americans. The zaibatsus – dominant families

owning major corporations were forced to sell them public and

anglo-american shareholder...
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