ABSTRACT
This chapter investigates the evolution of ownership structure and corporate governance in Japanese firms based on the entire population of listed firms from 1962 to 2012. Ownership structure is one of the main corporate governance mechanisms, and many prior studies focus on the characteristics of the ownership structure of Japanese firms. The chapter argues that the IPO firms that went public from 1949 to 1960 (Group 1 firms) and the IPO firms that went public from 1961 to 1964 have totally different firm characteristics, including the ownership pattern. It also investigates the impacts of the major external (both global and domestic) shocks that may have driven significant changes in ownership structure and corporate governance. The chapter provides insights on how much Japanese corporate governance has shifted and where it is heading given the changes in ownership structure driven by major environmental changes. It analyzes the evolution of ownership structure using the entire population of listed firms with longitudinal data.
