The size and composition of corporate boards in Japan

We analyse the structure of corporate boards in Japan to determine whether they are matched to each firm's specific needs. Consistent with US findings, our results show that board size is positively related to firm size and firm complexity, and negatively related to monitoring costs. However, b...

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Bibliographic Details
Published inAsian business & management Vol. 11; no. 4; pp. 425 - 444
Main Authors Aman, Hiroyuki, Nguyen, Pascal
Format Journal Article
LanguageEnglish
Published London Palgrave Macmillan UK 01.09.2012
Palgrave Macmillan
Subjects
Asian Culture
Board of directors
Boards of directors
Business and Management
Business management
Corporate responsibility
Decision making
Decision making units
Directors
Hypotheses
International Business
Investments
Japan
Organizational structure
Original Article
Size of enterprise
Social responsibility
Studies
U.S.A
Japan
board independence
corporate governance
foreign ownership
monitoring
decision-making
outside directors
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Summary:We analyse the structure of corporate boards in Japan to determine whether they are matched to each firm's specific needs. Consistent with US findings, our results show that board size is positively related to firm size and firm complexity, and negatively related to monitoring costs. However, board independence appears to be unrelated to most firm characteristics. This suggests that Japanese boards are not optimally structured to carry out their role of advising and monitoring the firm. By closing their doors to outsiders and choosing to rely on their internal managerial resources, Japanese firms could be missing an opportunity to enhance their decision-making processes.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:1472-4782
1476-9328
DOI:10.1057/abm.2012.15