Revisiting Japan’s stakeholder-based system and foreign ownership: IR managers’ view of foreign shareholders in corporate governance reform in Japanese companies

Purpose Building on the institutional theory perspective corporate governance change and based interviews with investor relations (IR) managers in large Japanese companies, this study aims to examine IR managers’ perceptions of influence foreign shareholders Japan’s reform stakeholder-based system. The paper examines tensions, conflicts collaborations among different stakeholders involved changes Japan, especially areas firm ownership, employment boards directors. explains why convergence does not happen some companies by investigating responses multiple contexts. Design/methodology/approach author conducted in-depth ten at large, listed Kyoto Tokyo two investment banks Tokyo, between 2018 2021. Findings This explores five themes that emerged from my interviews: Chief executive officers’ (CEOs’) mixed investors, effectiveness CEO compensation outside directors, reluctance accept stock price-driven business strategies, investors’ engagement vs investments index funds gender patterns, including token female looked incorporated as consultants adopted a few major shareholder-based customs, such CEOs communicating having increasing slimming down unprofitable parts via restructuring downsizing. Simultaneously, they resisted practices. Foreign shareholders’ pressure revealed tensions contradictions stakeholder system shareholder primacy-based customs. Originality/value is one qualitative studies reform, particular focus board members. provides examples tension, conflict cooperation seen through eyes managers. Examining enables us better understand processes which, vigorous government shareholders, non-western country like Japan may adopt customs how also lead changes.