Japanese Corporate Governance in Transition

Abstract

Japanese corporate governance is in transition. Such an institutional change can be an evolutionary and path dependence process, since it may not necessarily follow the same paths taken in other countries. Nor converge to existing models elsewhere. The paper deals with (1) a stylised model of Japanese corporate governance, (2) the current problems of existing mechanisms and some emerging new disciplines and players, and (3) some implications for the future of Japanese corporate governance. Throughout the paper, the two-tier and contingent mechanism will be stressed not only as a traditional Japanes e model but also a more general model of corporate governance.