Question

What is the difference between the US and Japanese forms of corporate ownership?

Answer 1

Different corporate governance models have become increasingly scrutinized and analyzed as globalization takes hold in world markets. It has also become increasingly clear that corporate environments and structures can vary in substantive ways, even when business objectives are generally universal. Three dominant models exist in contemporary corporations: the Anglo-US model, the German model, and the Japanese model.In one sense, the differences between these systems can be seen in their focuses. The Anglo-US model is oriented toward the stock market, while the other two focus on the banking and credit markets. The Japanese model is the most concentrated and rigid, while the Anglo-US model is the most dispersed and flexible.

The Anglo-US model, also known as the Anglo-Saxon model, was crafted by the more individualistic business societies in Great Britain and the United States. This model presents the board of directors and shareholders as the controlling parties. The managers and chief officers ultimately have secondary authority.

Managers derive their authority from the board, which is (theoretically) beholden to voting shareholders' approval; however, most companies with Anglo-US corporate governance systems have legislative controls over shareholders' ability to assert practical, day-to-day control over the company. The capital and shareholder structure are highly dispersed in the Anglo-US markets. Moreover, regulatory authorities, such as the U.S.