Podcast
Questions and Answers
What did Sony's management organization do to mirror U.S. firms' practices?
What did Sony's management organization do to mirror U.S. firms' practices?
- Adopted a salary-centric approach for compensation of the CEOs where CEO pay was not strongly linked to firm size or performance
- Implemented the Corporate Governance Code and the Stewardship Code, increasing institutional investors' influence in firms' governance
- Maintained a stable ownership structure with significant bank holdings and reciprocal corporate cross-shareholdings
- Delegated implementation to executive officers while the board focused on decision-making and strategic supervision (correct)
What was the response to Sony's move to mirror U.S. firms' practices?
What was the response to Sony's move to mirror U.S. firms' practices?
- It had no significant impact on other Japanese firms
- It led to a decline in institutional investors' influence in firms' governance
- It was met with resistance and criticized by business journalism
- It was well-received by business journalism and prompted many other Japanese firms to follow suit (correct)
Which of the following is NOT a unique feature of the traditional Japanese model of corporate governance?
Which of the following is NOT a unique feature of the traditional Japanese model of corporate governance?
- Trading-ties-based corporate groups (e.g., a horizontally structured keiretsu through the main banks or a vertically structured keiretsu)
- CEO compensation strongly linked to firm size and performance (correct)
- Stable employment relationships
- Stable ownership structure with significant bank holdings and reciprocal corporate cross-shareholdings
What did the Japanese government initiative in 2014 aim to achieve?
What did the Japanese government initiative in 2014 aim to achieve?
What was the traditional approach to CEO compensation in the Japanese model of corporate governance?
What was the traditional approach to CEO compensation in the Japanese model of corporate governance?
Which of the following was a key feature of the traditional Japanese model of corporate governance?
Which of the following was a key feature of the traditional Japanese model of corporate governance?
What strategic move did Olympus make to redirect its focus towards its core medical equipment sector?
What strategic move did Olympus make to redirect its focus towards its core medical equipment sector?
Despite global M&A activity experiencing a decline, which region remained at the forefront of M&A investments?
Despite global M&A activity experiencing a decline, which region remained at the forefront of M&A investments?
What prompted a re-evaluation of the insular and conservative structure of Japanese corporate governance?
What prompted a re-evaluation of the insular and conservative structure of Japanese corporate governance?
When did the shift in corporate decision-making in Japanese firms begin?
When did the shift in corporate decision-making in Japanese firms begin?
What change in corporate governance reform allowed 'large' firms in Japan to adopt a U.S.-style corporate structure?
What change in corporate governance reform allowed 'large' firms in Japan to adopt a U.S.-style corporate structure?
What aspect of Japanese corporate culture was likely influenced by the deepening investment ties between Japan and the United States?
What aspect of Japanese corporate culture was likely influenced by the deepening investment ties between Japan and the United States?
What was the primary focus of corporate directors and executives during the managerialist era?
What was the primary focus of corporate directors and executives during the managerialist era?
What was the primary reason for the challenges faced by managerial capitalism in the early 1970s?
What was the primary reason for the challenges faced by managerial capitalism in the early 1970s?
What was the philosophical approach of the managerialist era, as described in the text?
What was the philosophical approach of the managerialist era, as described in the text?
What did the text suggest was the potential for during the managerialist era?
What did the text suggest was the potential for during the managerialist era?
What did the text suggest was the outcome of the managerialist era?
What did the text suggest was the outcome of the managerialist era?
What did the text suggest was the role of legal frameworks during the managerialist era?
What did the text suggest was the role of legal frameworks during the managerialist era?
What is the primary goal of shareholder primacy theory?
What is the primary goal of shareholder primacy theory?
Why did economic theorists criticize the passive role of dispersed shareholders in public corporations?
Why did economic theorists criticize the passive role of dispersed shareholders in public corporations?
What belief forms the basis for shareholder primacy theory?
What belief forms the basis for shareholder primacy theory?
What did the rise of the Chicago School of economists in the 1970s lead to regarding corporate governance?
What did the rise of the Chicago School of economists in the 1970s lead to regarding corporate governance?
According to Milton Friedman, what is the primary social responsibility of a business?
According to Milton Friedman, what is the primary social responsibility of a business?
What argument justifies shareholder primacy theory based on corporate profits?
What argument justifies shareholder primacy theory based on corporate profits?
Which of the following is likely to occur as Japanese corporations prioritize ESG considerations?
Which of the following is likely to occur as Japanese corporations prioritize ESG considerations?
What change is anticipated in executive compensation structures for Japanese companies?
What change is anticipated in executive compensation structures for Japanese companies?
Which of the following statements best describes the potential convergence of Japanese and U.S. corporate governance standards?
Which of the following statements best describes the potential convergence of Japanese and U.S. corporate governance standards?
What is the primary driver for the anticipated changes in Japanese corporate governance practices?
What is the primary driver for the anticipated changes in Japanese corporate governance practices?
Which of the following statements is NOT supported by the information provided in the text?
Which of the following statements is NOT supported by the information provided in the text?
Based on the information provided, what can be inferred about the future direction of Japanese corporate governance?
Based on the information provided, what can be inferred about the future direction of Japanese corporate governance?
