Unstash the Cash! Corporate Governance Reform in Japan

August 4, 2014

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Format: Chicago

Chie Aoyagi, and Giovanni Ganelli. Unstash the Cash! Corporate Governance Reform in Japan, (USA: International Monetary Fund, 2014) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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 confirms that improving corporate governance would help unlock corporate savings. The main policy implication of our analysis is that comprehensive corporate governance reform should be a key component of Japan’s growth strategy.

Subject: Corporate governance, Currencies, Economic sectors, Financial institutions, Financial markets, Market capitalization, Money, Stocks

Keywords: Cash, Cash holding, Company disclosure, Corporate cash holdings, Corporate governance, Currencies, Firm, Governance attributes covering, Governance index, Holding, Japan, Market capitalization, Stocks, Vestee company, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/140
Stock No:

WPIEA2014140
ISBN:

9781498378253
ISSN:

1018-5941

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