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The Changing Pattern of Amakudari Appointments - The Case of Regional Banks 1991-2000

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  • Suzuki, Kenji

    (European Institute of Japanese Studies)

Abstract

Amakudari, or the reemployment of the officials retired from the government into senior management positions in private companies, is one of the informal institutions most frequently mentioned in the literature of Japanese political economy. However, few studies have examined it systematically. Focusing on the reemployment from Ministry of Finance and Bank of Japan into regional banks, this study discusses the mechanism of amakudari appointments and its change over time. Four different perspectives (human resource, communication, monitoring and compensation) are presented, and their validity is tested by an empirical analysis with the panel data of 96 regional banks from 1991 to 2000. The result shows that the appointment of a retiree from a ministry at the retirement of a predecessor from the same ministry (chain appointment) is no longer the case. On the other hand, it is also found that amakudari is more likely to occur at more profitable/ safer banks than others, which supports the traditional argument that amakudari is used as a compensation for retired bureaucrats.

Suggested Citation

  • Suzuki, Kenji, 2004. "The Changing Pattern of Amakudari Appointments - The Case of Regional Banks 1991-2000," EIJS Working Paper Series 187, Stockholm School of Economics, The European Institute of Japanese Studies.
    • Handle: RePEc:hhs:eijswp:0187
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    References listed on IDEAS

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    1. Blomstrom, Magnus & Gangnes, Byron & La Croix, Sumner (ed.), 2001. "Japan's New Economy: Continuity and Change in the Twenty-First Century," OUP Catalogue, Oxford University Press, number 9780199241736.
    2. Hassink, Wolter & van Rixtel, Adrian, 1998. "Monitoring the Monitors: Amakudari and the Ex-Post Monitoring of Private Banks," CEPR Discussion Papers 1785, C.E.P.R. Discussion Papers.
    3. Horiuchi, Akiyoshi & Shimizu, Katsutoshi, 2001. "Did amakudari undermine the effectiveness of regulator monitoring in Japan?," Journal of Banking & Finance, Elsevier, vol. 25(3), pages 573-596, March.
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    Cited by:

    1. Tetsuro Mizoguchi & Nguyen Van Quyen, 2009. "Amakudari: The Post-Retirement Employment of Elite Bureaucrats in Japan," Keio/Kyoto Joint Global COE Discussion Paper Series 2009-011, Keio/Kyoto Joint Global COE Program.

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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