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Cross-Shareholdings, Outside Directors, and Managerial Turnover: The Case of Japan

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  • Naohito Abe
  • Taehun Jung

Abstract

We have analyzed the monitoring role of outside directors in Japan. A detailed classification of each outside director into (1)former bankers; (2)former shareholders; (3)former cross-shareholders; and(4)pure outside directors reveals that only pure outside directors increase the turnover-performance sensitivity of inside directors. That is, we found that the background of each outside director is crucial for his or her role as a monitor.

Suggested Citation

  • Naohito Abe & Taehun Jung, 2004. "Cross-Shareholdings, Outside Directors, and Managerial Turnover: The Case of Japan," Hi-Stat Discussion Paper Series d04-38, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:hstdps:d04-38
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    References listed on IDEAS

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    Cited by:

    1. John Buchanan, 2007. "Japanese Corporate Governance and the Principle of “Internalism”," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(1), pages 27-35, January.
    2. Abe, Naohito & Shimizutani, Satoshi, 2007. "Employment policy and corporate governance-- An empirical comparison of the stakeholder and the profit-maximization model," Journal of Comparative Economics, Elsevier, vol. 35(2), pages 346-368, June.
    3. Naohito Abe & Ichiro Iwasaki, 2010. "Organisational culture and corporate governance in Russia: a study of managerial turnover," Post-Communist Economies, Taylor & Francis Journals, vol. 22(4), pages 449-470.

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