"Department of Industrial Engineering and Economics Working Paper 2016-9" is now available

Department of Industrial Engineering and Economics issues the series of Working Paper to highlight our recent research activities.

The latest issue, 2016-9: Yasuhiro Arikawa, Kotaro Inoue, Takuji Saito, Corporate governance, employment laws, and corporate performance in Japan: An international perspective.

Title of original paper

Corporate governance, employment laws, and corporate performance in Japan:
An international perspective

Author

Yasuhiro Arikawa, Kotaro Inoue, Takuji Saito

Abstract

A number of cross-country analyses have demonstrated in recent years that the difference in the corporate governance and employment system by country leads to the difference in the shareholder structure, corporate valuation, investment behavior, and so on. This study examines whether the sustained low profitability and market valuation of Japanese firms can be explained by the corporate governance structure and the employment system using cross-country analysis. We find that the structure of the board of directors dominated by insiders and the employment system which hinders flexible employment adjustments have the significant explanation power over the poor performance of Japanese firms.

Following issues of Working Paper will appear as soon as available.

• Publications
• Department of Industrial Engineering and Economics Working Paper 2016-9