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Cross-Shareholdings, Outside Directors, and Managerial Turnover:
The Case of Japan
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| Naohito Abe and Taehun Jung |
| We have analyzed the monitoring role of outside directors in Japan. A detailed classification of each outside director into (1)former bankers; (2)former shareholders; (3)former cross-shareholders; and(4)pure outside directors reveals that only pure outside directors increase the turnover-performance sensitivity of inside directors. That is, we found that the background of each outside director is crucial for his or her role as a monitor. |
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| Copyright (C) 2003 by Institute of Economic
Research.All rights reserved. |
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