Abstract

Japanese companies are facing an increasingly competitive and challenging business landscape. Heralded as part of the Abenomics ‘third arrow’, corporate governance is currently seen as one of the keys to unlocking corporate Japan’s full potential. I will therefore discuss and analyse the implications of the revised Japanese Corporate Governance Code (‘the Code’) in effect from 1 June 2015. Heavily drawing upon principles of the UK Corporate Governance Code, the Code represents a marked step towards convergence with the Anglo-American shareholder-centric model in an attempt to bolster shareholder activism and drive cash-hoarding companies to generate greater returns, thereby strengthening the Japanese economy. I will cover the Code’s potential impact from the perspective of both Japanese businesses and foreign companies dealing with Japan.