Assignment Questions
1. Is Japanese corporate governance changing?
Yes, moving toward an Anglo-American or market-based governance system, there is little possibility that it will converge on that mode. One reason is that there are two kinds of factors determining corporate governance: one is the factors that converge easily internationally, such as financial markets reflecting financial globalization, financial data, and accounting rules; the other is those that are less likely to converge, such as the social system of a nation, commercial and corporation laws that reflect history and commercial practices.
2. How do Japanese cultural, historical and institutional variables make Japanese corporate governance different from Anglo-American counterparts?

The difference between Japanese and Anglo-Americana following :
1. An initial capital investment in Tokyo Disney Sea Park of ¥400 billion (US$3.4 billion) will be made in 2000.
2. The number of visitors will remain the same during the next four years and will increase
30% in 2002 when Tokyo DisneySea Park will be opened. They will increase 10% in
2003 and 2004. In 1997, the average admission fee per person was ¥10,421 (US$88.30).
Given the deflationary climate, admission fees will increase by 2% annually during the four years after 1997, and will increase by 15% in 2002 at the opening of Tokyo
DisneySea Park and will again increase by 10% in 2003. In 2004, admission fees will remain at the same rate as in 2003.
If the new project is not undertaken, the number of visitors will remain the same during the seven-year period and admission fees will increase by 2% annually over those seven years.49 3. Operating costs other than depreciation (67% of the sales, the ratio of 1997 data), administrative expenses (7%), and other expenses (4%) will increase proportionately with the increase in sales. These