Professor Takeshi Yamada explores the re-employment of former elite government officials as corporate board members in Japan.
Takeshi Yamada is a Professor of Finance. His research spans asset pricing and corporate finance, with a particular interest in Asian financial markets and institutions. Takeshi has explored the role of individual, institutional and foreign investors in the Japanese stock market, and how employees and banks affect corporate behaviour in Japan.
The abstract of the paper on which the seminar will be based: More than a quarter of non-financial firms listed in Japan hire former elite government officials as corporate board members. Firms hire bureaucrats for their experience in the government, such as managing regulations, complying with the law, or securing government procurements. In 2007, the government revised the Act regulating the re-employment of retired bureaucrats in the private sector, following public criticism of the practice. The Act regulates the re-employment of bureaucrats who are closely engaged with private firms in public office. For example, heavily regulated energy-related firms hired fewer bureaucrats from the industry ministry after the revised Act. However, re-employment has increased in industries where bureaucrats have not closely supervised firms. Firms hire retired bureaucrats based on the costs and benefits they offer. However, we cannot rule out the implicit government pressure on private firms to re-employ bureaucrats, given that the human resources practices in the Japanese public service encourage bureaucrats to retire early.
Light lunch will be served.