Unfortunately, shareholders were not always at the top of the list of priorities. Now, creation of shareholder value is vital for the survival of Japanese firms. Of course, there are many types of shareholders. The trend in the U.S. is often for the creation of short-term profits, and this may not be the best model for all companies. However, shareholder value and a focus on profits will be necessary for Japanese firms to survive.
Japan can also gain from America's experience in transparency and corporate governance.
Companies that disclose information and have a good system of governance force management to pursue the goals of shareholder value and profits. Things are beginning to change in Japan's corporate culture. More managers are talking about shareholder value and the need for change. Some companies that have succeeded in global competition are prospering because of their ability to change and implement new business methods. In the past, I had hoped that the government and its promises of structural reform would encourage further change.