Title
The Fall of 'Companyism' in Japanese Corporate System
Abstract
This paper examines the effects of structural changes in financial
system on corporate system, particularly finance and employment
in Japan, and discusses the underlying problems and the future
directions. Japanese corporate system can be characterized to
be cooperative long-term relationships with factor suppliers in
the absence of strong control by shareholders, so called 'companyism.'
Companyism of large firms has worked well in the most of the post-war
period. Since substantial economic growth can no longer be expected
in Japan, long-term relationships with factor suppliers have been
undergoing changes. Japanese firms have found it impossible to
maintain existing employment relations. It has been getting harder
for the firms to avoid drastic reduction of employees.
Keywords: Corporate finance; Financial systems; Labor relations;
Japanese firms.
Kenji KOJIMA
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: (81) 78 803 7036
Fax: (81) 78 803 7059