An Institutional Theory Perspective on the 'Global Convergence' in Japanese Corporate Governance

• Main Authors: YOSHIKAWA, Toru, PHAN, P. H.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2004
• Subjects: Asian Studies; Business Law, Public Responsibility, and Ethics; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/182
• Institution: Singapore Management University

There is a rising global pressure to adopt Anglo-American corporate governance practices because of globalization of capital markets. Non Anglo-American firms such as those of the Japanese also face domestic forces in their home country that influence their governance practices. We present an institutional theory based framework that explains the determinants of non Anglo-American firms’ choice of corporate governance practices. We argue that the institutional distance and a firm’s institutional embeddedness affect whether a firm will adopt Anglo-American corporate governance practices.