CORPORATE GOVERNANCE IN JAPAN: AFFILIATION, FIRM SIZE, AND THE STRUCTURE OF CORPORATE OWNERSHIP

Abstract

This study examines the influence ofcorporate qffiliation andfirm si:::,e on ownership structure and lending constituents in Japan. Ourfindings support the notion that.financial institutions concentrate their ownership posi- tions in large companies, while the dominant ownership group ofsmaller companies appears to be associated larger companies. This lmge-sma//jinn difference appears to be present whether the.ftr111s are ajfiliatedforma//y though keiretsu membership. Our.findings ore consistent 1Fith the notion that co1porate go11ernance in Japan radiates from main banks to large "parent" corpomtions and thenji-0111 these large corporations to smaller "child" co1porations.