Japanese corporate governance in comparative perspective

Corporate governance is becoming a very important issue in Japan as the country seeks to reform its economic institutions and in particular to undertake financial reform. The existing system of corporate governance in Japan gives main banks and large parent companies considerable power, and also involves a large degree of interlocking shareholdings. It has some advantages, but tends to be non-transparent and lacking in external accountability. It is widely believed that this system has now come to the end of its useful life.