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Overview of the Evolution of Corporate Governance: The impact of reforms and the future of Japanese firms

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  • Yasuhiro ARIKAWA
  • Hideaki MIYAJIMA
  • Takuji SAITO

Abstract

This paper examines the evolution of corporate governance systems in Japanese firms in the 21st century. It highlights the current state of governance, focusing on external mechanisms such as bank–firm relationships and ownership structures, as well as internal mechanisms including board composition and CEO compensation. It also reviews organizational architecture, with particular attention to the employment system. The analysis considers the role of corporate governance reforms in shaping these systems. We then assess whether these reforms have effectively altered corporate behavior and/or improved firm performance. Finally, we evaluate the extent to which the reforms have contributed to advancements in ESG practices.

Suggested Citation

  • Yasuhiro ARIKAWA & Hideaki MIYAJIMA & Takuji SAITO, 2025. "Overview of the Evolution of Corporate Governance: The impact of reforms and the future of Japanese firms," Policy Discussion Papers 25014, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:polidp:25014
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    References listed on IDEAS

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