scholarly journals Corporate governance and management practices in Japan: Current issues

2003 ◽  
Vol 1 (2) ◽  
pp. 38-52 ◽  
Author(s):  
Masao Nakamura
Keyword(s):  
Corporate Governance ◽  
Management Practices ◽  
Governance Reform ◽  
Governance System ◽  
Policy Initiatives ◽  
Corporate Governance System ◽  
Corporate Governance Reform ◽  
Governance Practices ◽  
Potential Applicability ◽  
Anglo American

Facing the prolonged recession since the burst of a financial bubble in 1990 Japan has been experimenting with various new policy initiatives both in the public and private sectors, corporate governance reform being one of such policy initiatives. Japanese corporate governance practices in particular have been severely blamed as one of the primary reasons for Japan’s poor economic performance in the last decade. In this paper we discuss the relationship between corporate governance and various aspects of management practices in Japan. (Corporate governance in Japan emphasizes not only the shareholders and managers, as in the West, but also the workers as important corporate stakeholders.) We point out also that Japan’s relatively loosely practiced anti-monopoly (anti-trust) laws continue shaping Japanese corporate governance behavior. We then evaluate Japan’s corporate governance reform movement which emphasizes the transformation of the current corporate governance system, which pays little attention to individual shareholders, into one similar to the Anglo-American system which focuses more on shareholders’ value. We tentatively conclude that Japan has not yet found a new corporate governance system that can serve as an equilibrium business system in that it is compatible with Japan’s management, legal and other practices and the incentives of the constituents of Japanese firms. This paper also presents various incentive and institutional issues which would have to be considered by those who consider potential applicability of the Japanese-like corporate governance practices to transitional economies.

scholarly journals Evolution of German corporate governance (1995-2014): an empirical analysis

2019 ◽  
Vol 19 (5) ◽  
pp. 1042-1062
Author(s):  
Andreas Rühmkorf ◽  
Felix Spindler ◽  
Navajyoti Samanta
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Governance System ◽  
Content Type ◽  
Convergence Process ◽  
Corporate Governance System ◽  
Anglo American ◽  
The Stability ◽  
The Global Financial Crisis

Purpose This paper aims to address the evolution of corporate governance in Germany with a particular regard to whether there can be observed a gradual convergence to a shareholder primacy corporate governance system. Design/methodology/approach To investigate a potential shift of the German corporate governance system to an Anglo-American tiled corporate governance system, the authors have empirically assessed on a polynomial base 52 separate company and corporate governance variables for 20 years (1995-2014). Findings This research suggests that a gradual convergence has taken place prior to the global financial crisis. However, the results suggest that the convergence process experienced a slowdown in the aftermath of the global financial crisis, which may be linked to the stability of the German corporate governance system during the global financial crisis and the political environment during this time. Originality/value This paper contributes to the research by not only analysing the development of the German corporate governance system but also identifying new reasons for this development and explaining why a new convergence process may be observed in the future again.

scholarly journals The Impact of Corporate Governance on Company Performance: A Study among Medium and Large Enterprises in Kosovo

2018 ◽  
Vol 9 (6) ◽  
pp. 207-212
Author(s):  
Saxhide Mustafa ◽  
Hajdin Berisha ◽  
Shyqyri Llaci
Keyword(s):  
Corporate Governance ◽  
Company Performance ◽  
Governance System ◽  
Market Experience ◽  
Corporate Governance System ◽  
Governance Practices ◽  
The Impact ◽  
Proper Balance ◽  
Large Enterprises

Abstract An effective corporate governance system is established to ensure proper balance of long-term interests of different stakeholders (primarily: owners, employees and management) and improve company's performance and its competitive position in the market. This paper provides a theoretical discussion and empirical evidence on the interdependence between corporate governance and company performance among medium and large enterprises in Kosovo. A questionnaire survey was employed for data collection purposes. The study included a sample of 87 managers from 87 medium and large enterprises. Results indicate that effects of corporate governance on the performance tend to be greater in larger companies. Regarding the determinants, the theoretical expectations are confirmed. Results confirm that the size of the company, the level of investment, export activities and company life expectancy are statistically significant determinants of the adoption of corporate governance practices. As a result, larger companies with large scales of investment and longer market experience tend to adopt more corporate governance practices. The study suggests that corporate governance will inevitably affect companies’ performance and further research is needed in this context.

scholarly journals JAPANESE CORPORATE GOVERNANCE REFORM : WHAT IS REQUIRED FOR EFFECTIVE FUNCTIONING OF OUTSIDE DIRECTORS ?

2019 ◽  
Vol 8 (1) ◽  
pp. 11
Author(s):  
Masaru Suzuki
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Lessons Learned ◽  
Gradual Change ◽  
Governance Reform ◽  
Outside Directors ◽  
Governance System ◽  
Corporate Scandals ◽  
Management Board ◽  
Corporate Governance Reform

<p>The topic of outside directors’ functions has been attracting significant attention for many years now, especially in the discussions about corporate governance reform in Japan. Over the last two decades, most listed Japanese companies have voluntarily introduced outside directors into their boardrooms, in line with the gradual change in an overall corporate governance system toward a monitoring board model moving away from the more traditional management board model. It appears the recent trend is for companies to add outside directors to their boards of directors to increase corporate values.<strong> </strong>In the midst of transforming the management board model into the monitoring board model, closely reexamining the functions of outside directors is necessary. What can be concluded from the lessons learned from recent corporate scandals and the discussions concerning the functions of outside directors is: (1) outside directors should be truly independent from the company’s management; and (2) outside directors need access to the company’s corporate information in order to prevent corporate scandals and to provide appropriate advice to the company’s management. <strong> </strong>This paper aims at considering how to make outside directors more effective and their roles more substantial, based on the history of corporate governance reform in Japan.</p>

scholarly journals Corporate governance in Slovenia: Working at last?

2019 ◽  
Vol 3 (2) ◽  
pp. 40-51 ◽  
Author(s):  
Sandra Damijan ◽  
Jože P. Damijan
Keyword(s):  
Corporate Governance ◽  
Energy Transport ◽  
Gain Control ◽  
Governance System ◽  
Private Companies ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Privatized Firms ◽  
Supervisory Boards ◽  
The Government

Because of deploying specific methods of privatization that favoured domestic over foreign owners and that enabled both internal owners and state-controlled funds to gain control over companies, corporate governance in Slovenia used to be a cumbersome issue over the last two decades. This led to an on-going battle for control over companies. On one side, in addition to management buy-outs, internal owners used peculiar methods, such as “shares parking” at related companies to gain control over companies of interest without having to engage in a takeover procedure. On the other side, the government used its state-controlled funds to gain control over strategic companies in specific sectors, such as finance, energy, transport and telecommunications. Combined with direct holdings of assets by the state, this gave the existing political coalition in power a mechanism to exert control over a large number of companies and to interfere with the management of privatized firms through an adverse selection of candidates for supervisory boards and board of directors. The victims of these unsound corporate governance practices were usually small shareholders and suboptimal performance of companies. For a private sector, the “game-changer” was a financial crisis that deprived many management-owned companies of control over the companies, while government involved in some changes in the regulatory framework to fight peculiar corporate governance practices. However, while Slovenia has gradually established a modern framework for a transparent corporate governance system, regulating listed and non-listed private companies as well as SOEs, the practices deployed by the parties are still far from transparent, adequate and professional.

scholarly journals Effect of Earnings Management on Firm Value with Corporate Governance as a Moderating Variable

2021 ◽  
Vol 9 (2) ◽  
pp. 262-268
Author(s):  
Jevri Afrizal ◽  
Rindu Rika Gamayuni ◽  
Usep Syaipudin
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Value ◽  
Management Practices ◽  
Governance System ◽  
Corporate Governance System ◽  
And Performance ◽  
Conceptual Study ◽  
Positive Effect

This study aims to provide a conceptual study of the effect of earnings management on firm value by including corporate governance. as a moderating variable. This paper is a conceptual paper that discusses issues related to earnings management on firm value and the role of corporate governance in minimizing earnings management practices so as to increase firm value. Previous theoretical studies have shown that earnings management is effectively controlled by the corporate governance system and performance. In addition, the results of previous studies found empirical evidence that there is a positive relationship between earnings management and firm value. From the theoretical discussion and previous research, it is concluded that earnings management practices have a positive effect on firm value as moderated by corporate governance.

scholarly journals The key challenges of corporate governance of firms: Empirical evidence from Sub-Saharan African anglophone (SSAA) countries

2016 ◽  
Vol 13 (3) ◽  
pp. 415-433
Author(s):  
Adeoye Amuda Afolabi
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
South African ◽  
Vital Role ◽  
Accounting System ◽  
Governance System ◽  
Listed Firms ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Sub Saharan

This paper uses empirical evidence to identify views about the important components of good corporate governance practice for listed firms in Sub-Saharan African Anglophone countries. This study used survey questionnaire based on international corporate governance norms, data were collected from listed firms in Ghana, Nigeria and South Africa. The findings include: In Ghanaian and South African firms there are evidence that regulatory framework and enforcement of corporate governance promote sound corporate governance system. This study revealed that commitment of board of directors to disclosure and communication may provide effective corporate practices. Political environment and ownership structure of firms’ hinder sound corporate governance practices. Accounting system operating in each country plays a vital role in promoting sound corporate governance system. However, societal, cultural and corruption seem to deter corporate governance system in Ghanaian and South African firms. We recommend that there should be prudent monitoring of corporate governance rules and enforcement.

scholarly journals Corporate Governance Reform: Influence on Shareholder Wealth

1970 ◽  
Vol 16 (1) ◽  
pp. 48-66
Author(s):  
Richard Pouder ◽  
R. Stephen Cantrell
Keyword(s):  
Corporate Governance ◽  
Corporate Performance ◽  
Shareholder Wealth ◽  
Additional Research ◽  
Governance Reform ◽  
Shareholder Returns ◽  
Corporate Governance Reform ◽  
Individual Effects ◽  
Governance Practices ◽  
Governance Practice

Many corporations have adopted governance practices advocated by shareholder activists. To date, the net effect of such practices is largely unknown. Both practitioners and academics agree that additional research is required to determine whether governance practices have actually improved corporate performance. This paper attempts to resolve some of the uncertainties surrounding changes in governance practice. We consider four governance practices widely advocated by shareholder activists and test whether their net and individual effects have an impact on shareholder returns following layoff announcements.

Corporate Governance, Socio-Economic Factors and Economic Growth: Theoretical Analysis

2017 ◽  
Vol 7 (1) ◽  
pp. 311 ◽  
Author(s):  
Muhammad Arslan ◽  
Jamal Roudaki
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Economic Factors ◽  
Governance System ◽  
Policy Makers ◽  
Stock Market Development ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Socio Economic Factors

Corporate governance (CG) fosters dynamic economic growth through managing stakeholder interest and reducing the cost of capital which ultimately lead towards the development of financial markets and better firm performance. Recently, regulators and policy makers around the world either have revised extensively or introduced new laws, codes and listing regulations to enhance effectiveness and transparency of corporate governance practices. Established economic theories were already aware of the significance of corporate governance for development and economic growth. This study assesses the link between corporate governance, socio-economic factors and economic growth through a consistent literature review. A majority of studies show a positive effect of corporate governance on economic growth of a country through stock market development. Moreover, theoretical and empirical research reveals that socio-economic factors are also a pivotal determinant of corporate governance mechanisms. This study summarizes the key findings and concludes that dynamic and flexible corporate governance system claims more demand as compared to rigorous corporate governance principles especially in emerging countries. This study also finds the need of methodological advancement in corporate governance research. Nevertheless, the social economic factors, political and legal system of the country should be blended in introduction and adaption of corporate governance system. The regulators and policy makers can use theoretical grounds of study for reforms of the corporate governance system.

scholarly journals Financial reporting, corporate communication and governance

2003 ◽  
Vol 1 (2) ◽  
pp. 31-37 ◽  
Author(s):  
Andrea Melis
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Corporate Communication ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Positive Perspective ◽  
Anglo American ◽  
Highly Correlated

This paper describes the issues of financial reporting and corporate communication in connection with corporate governance. The analysis is based on the studies conducted in the Anglo-American and the European academic literature both from a normative and a positive perspective. It is discussed why accounting standards are not able by themselves to avoid corporate “miscommunication”, and how a good corporate governance system is a sine qua non to improve the quality of corporate communication and financial reporting. The analysis also shows how the effectiveness of the systems of financial reporting and corporate governance seems to be highly correlated.

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