Corporate Governance and Corporate Behavior in Japan

Masaharu Hanazaki is a professor at the Graduate School of Commerce and Management, Hitotsubashi University. He graduated from Waseda University in 1979 and joined the Japan Development Bank. He was a Director General and the Executive Director of the Research Institute of Capital Formation of the Development Bank of Japan (DBJ) from October 2003 to March 2012. After retiring from the DBJ in March 2012, he immediately assumed his current position at Hitotsubashi University. His main fields of research are corporate finance, corporate governance, financial systems, and the Japanese economy. His major English articles include:  “Corporate Governance and Investment in East Asian Firms—Empirical Analysis of Family-Controlled Firms” (with Qun Liu), Journal of Asian Economics, 18, 76–97, 2007  “A Review of Japan’s Bank Crisis from the Governance Perspective” (with Akiyoshi Horiuchi), Pacific-Basin Finance Journal, 11, 305–325, 2003 “Is Japan’s Financial System Efficient?” (with Akiyoshi Horiuchi) Oxford Review of Economic Policy, Vol. 16, No. 2, 61–73, 2000 His English book publications include:  Designing Financial Systems in East Asia and Japan, (Joseph P. H. Fan, Masaharu Hanazaki, and Juro Teranishi, eds.) Routledge Curzon, 2004 “A Vacuum of Governance in Japanese Bank Management,” (with Akiyoshi Horiuchi) in Banking, Capital Markets and Corporate Governance (Hiroshi Osano and Toshiaki Tachibanaki, eds.), Palgrave, pp. 133–180, 2001

• 1. Introduction.- 2. Institutional characteristics and effects of a stock option.- 3. Empirical analysis of a stock option.- 4. Related studies of corporate diversification.- 5. Corporate diversification of Japanese firms.- 6. Empirical analyses of corporate diversification and division of corporations.- 7. Main results and their interpretation.