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Complementarities in Corporate Governance - A Survey of the Literature with Special Emphasis on Japan

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  • Heinrich, Ralph P.

Abstract

The present paper uses a comparison of Japan and the US to argue that the debate about corporate governance reform is best framed in terms of systems of complementary instruments and institutions. It argues that the Japanese and US systems of corporate governance differ along many dimensions, yet can both be understood as efficient combinations of complementary instruments adapted to a particular institutional and regulatory environment. The paper also shows how exogenous shocks and piecemeal regulatory reforms have undermined the internal consistency of the Japanese system in the recent past.

Suggested Citation

  • Heinrich, Ralph P., 1999. "Complementarities in Corporate Governance - A Survey of the Literature with Special Emphasis on Japan," Kiel Working Papers 947, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:947
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    1. Heinrich, Ralph P., 1999. "A Model of Corporate Governance As a System," Kiel Working Papers 931, Kiel Institute for the World Economy (IfW Kiel).
    2. Aguilera, Ruth & Jackson, Gregory, 2002. "Hybridization and heterogeneity across national models of corporate governance," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 3(2), pages 17-25.

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    More about this item

    Keywords

    Corporate governance; Complementarity; Agency problem; Japan;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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