Japan Defends Troubled Firms to Ensure They Survive

The transcript discusses the financial health of companies like Toshiba and Valiant, highlighting issues such as negative operating income and public perception of bankruptcy. It examines the impact of accounting probes on Japanese companies, noting the social role of mega banks in Japan. The discussion extends to corporate governance challenges in Japan, including the lack of independent directors and board diversity. The need for structural reform in Japan is emphasized, particularly in corporate governance and allowing companies to go bankrupt.

What is a significant consequence of accounting probes on companies like Toshiba and Valiant?

• Increased trust from banks

• Boost in stock prices

• Skepticism from banks and investors

• Reduction in operational costs

How do mega banks in Japan typically support struggling companies?

• By selling their assets

• By acquiring them

• By providing continuous loans

• By cutting their workforce

What cultural aspect of employment is still prevalent in Japan?

• Frequent job hopping

• Remote working

• Lifetime employment

• Short-term contracts

What is a major issue with corporate governance in Japan?

• Excessive number of independent directors

• Lack of independent directors and women on boards

• Over-regulation of board activities

• High percentage of women on boards

What reform is suggested to improve corporate governance in Japan?

• Reducing board oversight

• Increasing the number of independent directors

• Eliminating board meetings

• Decreasing the number of women on boards