The new shape of capitalism emerging from Japan corporate reform
- Adam German
- 4 days ago
- 1 min read
On October 31st, the Asia Society held a wide-ranging panel discussion on Japan’s economic crossroads.
Experts Jesper Koll, Robert Feldman, Andrew McDermott, George Olcott, and Alicia Ogawa debated whether Japan should adopt private equity’s profit-driven model or refine its own system built on long-term stability and shared prosperity.
From Warren Buffett’s Japan investments to lessons from Hitachi and Toyota, the speakers explored how Japan’s public markets can balance innovation, productivity, and the public good.
Key Topics Covered
Japan’s socioeconomic model remains among the best globally despite decades of low growth.
Ownership has shifted from banks and cross-shareholdings to global and public investors, driving new governance standards.
Corporate activism and takeovers are rising as companies face pressure to use their excess cash more efficiently.
Profits of listed firms have risen elevenfold in 30 years even with minimal revenue growth—proof of strong efficiency.
CEO pay gaps remain modest in Japan (about 32× worker pay) versus 400× in the United States.
Speakers argued Japan’s public companies are underrated while private equity is overrated and overly tied to China.
The Government Pension Investment Fund (GPIF) has outperformed global peers like CalPERS while keeping costs low.
Japan’s strength lies in its “makers,” not financiers—focusing on building real products and long-term value.
True governance reform must boost productivity through transparency, worker retraining, and long-term capital stewardship.
Japanese firms such as Toyota, Hitachi, and Nintendo show global competitiveness when collaboration and openness replace insularity.
Activist investors are pushing for better governance, not just higher dividends—most proposals target board independence and transparency.
The challenge ahead: balance community-based capitalism with global innovation and competitiveness while telling Japan’s success story more effectively.
