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Principles and Agents: CalPERS and corporate governance in Japan

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  • Sanford M. Jacoby

Abstract

A growing literature discusses the convergence of national systems of corporate governance. Fostering convergence are activist institutional investors, especially from the United States. The following is a case study of one institutional investor – the giant pension fund, CalPERS – and its efforts to change governance in Japan over the past 15 years. CalPERS’ involvement in Japan went through three stages: solo activism; cultivation of local partners; and, most recently, a shift from marketwide activism to company‐level relational investing. Although CalPERS has had some success in changing Japanese corporate governance, economic and political factors have limited its influence and permitted the persistence of Japan’s distinctive governance system.

Suggested Citation

  • Sanford M. Jacoby, 2007. "Principles and Agents: CalPERS and corporate governance in Japan," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(1), pages 5-15, January.
    • Handle: RePEc:bla:corgov:v:15:y:2007:i:1:p:5-15
    DOI: 10.1111/j.1467-8683.2007.00537.x
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    Cited by:

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    3. Ahmed, Anwer S. & Iwasaki, Takuya, 2021. "Foreign ownership, appointment of independent directors, and firm value: Evidence from Japanese firms," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 43(C).
    4. John Buchanan & Dominic Heesang Chai & Simon Deakin, 2013. "Agency Theory in Practice: A Qualitative Study of Hedge Fund Activism in Japan," Working Papers wp448, Centre for Business Research, University of Cambridge.
    5. Henrik Cronqvist & Rüdiger Fahlenbrach, 2009. "Large Shareholders and Corporate Policies," The Review of Financial Studies, Society for Financial Studies, vol. 22(10), pages 3941-3976, October.
    6. Adegbite, Emmanuel, 2015. "Good corporate governance in Nigeria: Antecedents, propositions and peculiarities," International Business Review, Elsevier, vol. 24(2), pages 319-330.
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    8. Kano, Hirokazu & Iriyama, Akie, 2023. "Host country corruption and MNE location choice: The view of institutional pluralism," Journal of International Management, Elsevier, vol. 29(3).
    9. Yonekura, Akira & Gallhofer, Sonja & Haslam, Jim, 2012. "Accounting disclosure, corporate governance and the battle for markets: The case of trade negotiations between Japan and the U.S," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(4), pages 312-331.

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