Unstash the Cash! Corporate Governance Reform in Japan

Author/Editor: Chie Aoyagi ; Giovanni Ganelli
Publication Date: August 04, 2014
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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.
Series: Working Paper No. 14/140
Subject(s): Corporate governance | Japan | Cash management | Business enterprises | Corporate finance | Cross country analysis

Publication Date: August 04, 2014
ISBN/ISSN: 9781498378253/1018-5941 Format: Paper
Stock No: WPIEA2014140 Pages: 24
US$18.00 (Academic Rate:
US$18.00 )
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