Koito Case : International Corporate Governance

Case 1 06/02/2012 INTERNATIONAL CORPORATE FINANCE & political science Professor: Florencio Lopez de Silanes Molina Koito Manuf moulduring, Ltd. M1 - pigeonholing C Karine CAO Ludwig HSIA Thomas MERCIER Aurélien MOURGUES Pauline TUCCELLA 1 Case 1 06/02/2012 1. The Nipponese corporate brass clay differs vastly from the US clay. contend corporate government morselivity issues that may arise chthonian the Nipponese keiretsu system from the spatial relation of a) financiers b) owners c) suppliers and d) employees. A prominent feature of Japanese corporate organisation is the tendency for large corporations to engage in tight, long-term mercantile relationships. A keiretsu is an affiliation of related companies with engagement line of graze relationships and shareholdings. The fraction companies own portions of the shares in each others companies, centered on a nerve centre bank. This system helps protecting the company managements from stock ma rket fluctuations and takeover attempts, so enabling long-term planning in projects. Lets discuss the corporate governance issues that may arise nether the Japanese keiretsu system from the perspective of: a) Financiers Banks dominate the keiretsu. They finance the firms and act like a monitoring system for these firms.

muchover, in a keiretsu system, the companies are broadly speaking own by financial institutions. For instance, Toyota is stimulate at 65,6% by financial institutions in 1989 ( border 8). More generally, Exhibit 5 shows that all listed Japanese companies are mostly owned by financial institutions (45.6% in 1989) and especially banks (22.1%! in 1989). The core bank of a keiretsu buy shares in the firms and holds two lawfulness and debt on the keiretsu. Consequently, the bank can intervene immediately in the business and it can access to private information. Therefore, financiers hold in a huge power in keiretsu and can enamor the business of a company. b) Owners Japanese keiretsu is based on cross-shareholdings arrangements: the member companies own...If you insufficiency to get a full essay, order it on our website: BestEssayCheap.com

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