Title: Hostile takeover in Japan: institutional constraints and change

Authors: Mohammad Dulal Miah; Helal Uddin

Addresses: Department of Economics and Finance, University of Nizwa, Post Box No. 33, PC 616, Birkat Al Mouz, Nizwa, Oman ' Ritsumeikan Asia Pacific University, 1-1, Jumonjibaru, Beppu, Oita 874-8577, Japan

Abstract: The Livedoor-Fuji TV takeover battle for Nippon Broadcasting Systems is considered one of the greatest uproars in the corporate takeover in the history of Japan. The epic battle is believed to have its lasting impact on the basic institutions that govern the country's takeover market. The paper aims to investigate the institutional changes, if any, Japan has experienced following the Livedoor episode. Analysing a handful number of takeover attempts before and after the battle, the paper finds that although some surface changes can be observed, a broad-based change is yet to be seen. This can be attributed to the informal institutions which have long been recognised as fundamental building blocks of the national model of corporate governance in Japan.

Keywords: corporate governance; hostile takeover; institutions; Japan; Livedoor; cross-shareholdings; agency problem; business network; board of director; ownership; mergers and acquisitions; institutional rules.

DOI: 10.1504/IJBG.2017.10005587

International Journal of Business and Globalisation, 2017 Vol.19 No.1, pp.6 - 26

Received: 14 Aug 2015
Accepted: 25 Jan 2016

Published online: 12 Jul 2017 *

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