| Budget Amount *help |
¥3,600,000 (Direct Cost: ¥3,600,000)
Fiscal Year 2001: ¥800,000 (Direct Cost: ¥800,000)
Fiscal Year 2000: ¥1,300,000 (Direct Cost: ¥1,300,000)
Fiscal Year 1999: ¥1,500,000 (Direct Cost: ¥1,500,000)
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| Research Abstract |
The concept of the corporation is the basis on which the corporate governance system is built. The study reveals the importance of path dependence in five countries which conditioned their respective concept of the corportion. The central difference between UK and USA on the one hand and Japan, Germany and France on the other is that the former embraces shareholder primacy, while the latter pluralistic concept taking into account the interests of all major stakeholders. The UK is characterized by the accumulation of national and private capital thanks to the early development of joint stock corporation, industrial revolution, colonial trade and the stock exchange to create investment opportunities. The USA followed a similar pattern and already in 1919 the shareholder primacy was confirmed by the court decision leading to the development of the stock exchange. In Japan, Germany and France, the level of accumulation of private capital was low, which did not facilitate the development of the stock market and the shareholder primacy. As a latecomer each of these countries had to rely on the industrialization lead by the state with the firm considered not as a means for private enrichment, but as a vehicle for promoting national interests. This resulted in the concept of the corporation which put a premium on the survival and prosperity of the corporation, and not on the firm for personal enrichment. The three countries have been much influenced by the US concept of the corporation in the 90s. In the US, however, ony a minority of managers pursue shareholder primacy, and it is opposed by 95% of the Americans. The return on investment of US shareholders was not particularly high compared with the three countries. The Enron and other corporate scandals in October 2001 revealed the limits of US shareholder oriented concept of the corporation. The study concludes with the illustration of advantages and limits of each concept of the corporation and positive implications.
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