Corporate Governance and Control in Japan

631 Words Jan 28th, 2018 3 Pages
Japan’s seeming impenetrability to foreign takeovers, largely due to the prevailing corporate culture and governance that allegedly hinders such takeovers, has defined business firms and companies in the last decades (Lebrun, 2001; Gerlach, 1992; Maher and Wong, 1994; Seeman, 1986; Seeman, 1987; Stern, 1998). Such barriers have gradually been buoyed down by the worldwide economic recession of the recent times- an indication that while these barriers may not be totally lifted, the prospect of reducing it is optimistic (Itoh and Vestring, 2001; Larimer, 1999; Seeman, 1986; Seeman, 1987; JETRO, 2002;). Japanese inter-corporate relationships are considered in terms of three different structures of interaction: corporate groupings, financial centrality, and industrial interdependency. Almost all decisions in Japanese business are group decisions, which require virtually unanimous support from the members of the team making the decision Foreign firms, which, to a great extent, need to acquire market shares in Japan, the nation with the world's greatest trade surplus, find their way to major acquisitions in Japan virtually blocked by Japanese customs. They face substantial barriers to acquiring Japanese companies. With Japanese PERs approaching the 100 level, most foreigners will hardly find Japanese firms a bargain. Most of the mergers and acquisitions business has…
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