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2017 | 1(7) | 51-69

Article title

Unstash the Cash! Corporate Governance Reform in Japan

Content

Title variants

Languages of publication

EN

Abstracts

EN
Japan’s high corporate savings might be holding back growth, by preventing a more efficient use of resources. Small and medium enterprises (SMEs) have been the main contributors to high corporate cash balances, but more recently larger companies have also increased cash holdings. This paper focuses on the causes and consequences of the current corporate behavior and suggests options for reform. In particular, Japan’s weak corporate governance – as measured by available indexes – might be contributing to high cash holdings. An empirical analysis on a panel of Japanese firms confirms that improving corporate governance would help unlock corporate savings. The main policy implication of the analysis carried out in this paper is that a more ambitious and comprehensive corporate governance reform should be a key component of Japan’s growth strategy. Such a reform would help remove some of the bottlenecks of the legal and corporate governance framework

Year

Issue

Pages

51-69

Physical description

Dates

online
2017-05-19

Contributors

author
  • International Monetary Fund, Regional Office for Asia and the Pacific, Japan
  • International Monetary Fund, Regional Office for Asia and the Pacific, Japan

References

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Document Type

Publication order reference

Identifiers

ISSN
2353-6845

YADDA identifier

bwmeta1.element.desklight-db3350dc-eb7a-4b3c-a610-37ecd479bab9
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