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Personal Networks, Board Structures and Corporate Fraud in Japan

Author

Listed:
  • Takeshi Osada

    (Faculty of Economics, Graduate School of Humanities and Social Sciences, Saitama University, Saitama 338-8570, Japan)

  • David Vera

    (Department of Economics, Craig School of Business, California State University, Fresno, CA 93740, USA)

  • Taketoshi Hashimoto

    (Bank of Japan, Tokyo 103-0021, Japan)

Abstract

We examine the impact of corporate governance and personal networks on corporate fraud in Japanese companies, using panel logit and Cox proportional hazard models to analyze fraud occurrence and detection. This study focuses on the effects of Japan’s recent corporate governance reform and explores the unique influence of personal networks. Our key findings indicate that recent changes in corporate governance in Japan have been effective in preventing the occurrence of fraud and accelerating its detection. Additionally, stronger personal networks among board members help prevent fraud concealment, highlighting cultural differences in the effectiveness of personal networks in corporate governance compared to findings from Europe and the US.

Suggested Citation

  • Takeshi Osada & David Vera & Taketoshi Hashimoto, 2024. "Personal Networks, Board Structures and Corporate Fraud in Japan," JRFM, MDPI, vol. 17(8), pages 1-17, July.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:8:p:314-:d:1441148
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    References listed on IDEAS

    as
    1. El-Khatib, Rwan & Fogel, Kathy & Jandik, Tomas, 2015. "CEO network centrality and merger performance," Journal of Financial Economics, Elsevier, vol. 116(2), pages 349-382.
    2. repec:eme:mfppss:03074350010766990 is not listed on IDEAS
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