(UK FRC --> ) "The Financial Reporting Council (FRC) has issued today an updated version of the UK Corporate Governance Code (the Code). This significantly enhances the quality of information investors receive about the long-term health and strategy of listed companies, and raises the bar for risk management.
Japan’s tarnished image for corporate governance is undergoing a polish. From its declaration as a key “third arrow” reform for Abenomics, new company law reforms, the launch of a stewardship code for investors, and promised corporate governance code in 2015, the nation’s businesses have been put on notice to improve performance or face the consequences.
Article - "Investors come first in the new corporate governance code", by Stephen Haddrill,chief executive of the Financial Reporting Council.
How would you respond to this question?
Bruce Aronson at Hitotsubashi-wrote a paper (see below) in 2011 which provided some of the answers to this question, including the fact that bank loan interest rates are very cheap in Japan.
There has been a lot of talk about "stewardship" in Japan over the past year. And there have been fine statements and announcements made about stewardship commitments by many institutions. This is all good, even if it is not clear how all this will play out.
But actions speak much louder than words, - so we at BDTI think it fitting to point out that the following institutions have supported The Board Director Training Institute of Japan (BDTI) by making significant donations, in many cases more than once:
Nikkei Newspaper, “Economics Classroom” Column (8/8/2014)
( The Corporate Governance Reform Debate – Key Themes )
Independent Directors Should Make Up at Least One-Third of the Board -- Promulgate a “Code” that Meets Global Standards
(Bruce Aronson is Professor of Law at the Graduate School of International Corporate Strategy, Hitotsubashi University, and serves as an Advisor at
Nagashima Ohno & Tsunematsu. This article was previously published in JASBA's magazine, Gekkan Kansayaku. )
Abstract: Japan’s high corporate savings might be holding back growth. We focus on the causes and consequences of the current corporate behavior and suggest options for reform. In particular, Japan’s weak corporate governance—as measured by available indexes—might be contributing to high cash holdings. Our empirical analysis on a panel of Japanese firms
Japan has appointed a high-quality panel to advise on the core principles of its corporate governance code. The panel include an experienced foreign board member, Scott Callon, and several corporate governance advocates. As well, Mats Isakkson from the OECD will serve as an advisor.
Abstract: "Since 2003 the Australian Securities Exchange Corporate Governance Council (ASX) has required that all listed firms either adopt a majority of “independent” board members without links either to management or to substantial shareholders (i.e., 5% or greater shareholding) or “if not, why not”.