Shareholder Activism in Japan and Beyond
Synopsis
The system of corporate governance has undergone significant changes across major jurisdictions over the past decade. On the European continent and in Japan, the system of stable shareholdings is now largely gone. Correspondingly, investment funds have become more active in participating in the management of listed companies. Especially in Japan, the operation of activist funds has become conspicuous since the late 2010s. The country is a fertile ground for activist funds presumably for various statutory reasons and, arguably, also because the stock of many Japanese companies is considered undervalued. Multiple disputes between activist funds, target companies, and existing shareholders have reached the Japanese courts.
In theory, shareholder activism has a positive effect on corporate governance by increasing corporate value as reflected in higher share prices. But, at the same time, it may bring ‘short-termism’ to corporate governance, affecting the long-term strategy of companies. The goal of the contributions assembled in this volume is to examine the situation regarding activist funds in Japan from a comparative perspective and thereby to identify an optimal balance based on experiences in the selected jurisdictions.
Chapters
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Preface
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Current State of Shareholder Activism in Japan
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The Development of “Institutional Investors” and Activist Funds in Japan
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Beyond Anglo-American ModelsJapan’s Unique Approach to M&A and Its Impact on Shareholder Activism and Sustainability
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Some Recent Cases of Shareholder Activism in Japan
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The “New” Shareholder ActivismA Western Perspective
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U.S. Shareholder Activism: Convergence with Japan
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Shareholder Activism in FranceCurrent Debates and Reform Prospects
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Shareholder Activism in the UKThe Past, Present, and Future
