The Japanese Stewardship Code: Compliance and Outcomes

2018 Fiscal Year Research-status Report

• Project/Area Number: 17K04041
• Research Institution: Hitotsubashi University
• Principal Investigator: Routledge J. 一橋大学, 大学院経営管理研究科, 教授 (50771268)
• Project Period (FY): 2017-04-01 – 2020-03-31
• Keywords: Stewardship Code / Institutional Investors / Compliance

Outline of Annual Research Achievements

Data collection from archival sources is complete, including (1) Stewardship Code data for 2015 to 2017 and (2) financial, governance and other for empirical modelling. Data has been collected using research assistants to hand-collect Code disclosure data and purchase of Nikkei. Content analysis of disclosures is currently underway. Econometric modelling using Code compliance data is complete and two working papers have been written.

Current Status of Research Progress

2: Research has progressed on the whole more than it was originally planned.

Reason

Progress is consistent with the milestones outlined in the grant application research plan. In particular, the 2018 milestone of finalising data collection has been reached. Data collection is a significant component of the research project, and its completion means the empirical analysis phase of the project can according to the original schedule. Draft papers have been written, and it is anticipated that conference and journal submissions will proceed as planned during the final year. There have been no significant unforeseen obstacles that have affected the originally planned progress.

Strategy for Future Research Activity

The next major steps for the study are to (1) complete a Code compliance disclosure quality index using content analysis; (2) refine working papers already written; and, (3) make conference and journal submissions. The initial focus will be to model Code compliance and earnings quality and audit fees. Conference presentations are planned for 2019, followed by the development of papers for journal submission.

Causes of Carryover

Research assistant work on content analysis of Stewardship Code disclosures has been slower than anticipated, which has reduced the cost for this item in 2018. The balance of funds carried forward will be used to completed the research assistant work early in the next fiscal year.