News on Japan - Week 2, January 2016

Global investors always claimed that Japan's domestic investors are too supportive of company management. But new research shows that international investors are also increasingly reluctant to call out underperforming companies.

Foreign investors fear holding Japan Inc to account  (FT)

The “deflationary mindset” continues to dominate among Japanese executives. Yoshimitsu Kobayashi, chairman of Mitsubishi Chemical Holdings Corp., notes that: “Going back 10 or 20 years, people said that we have to be agile and speedy, but I really can’t see it here in Japan. You’d be hard-pressed to find much boldness.”

Japanese Profits Surge, but Not Wages  (WSJ)

Why does it seem that group consensus, achieving perfection, and preparing for every contingency are often the goals of business meetings in Japan? The answers to such questions can be found in core elements of Japan’s elementary schools.

From classroom to boardroom A lesson in business practices from Japan’s elementary schools (Japan Times)

In the early 1990s, Japan seemed to be everywhere. But Japan was far from being globalised and up to now many boardrooms, even those with large overseas operations, still fall short on this measure.

Japan business leaders urge real globalisation  (FT)

After Japanese stocks’ had its worst start to a year on record, Goldman Sachs Group Inc. has a $64 billion reason to keep the faith.

Goldman Sachs Sees $64 Billion in Buybacks Rescuing Japan Stocks (Bloomberg)

The economist Larry Summers has described Japan both as the first modern example of secular stagnation and a laboratory for plotting an escape route.

Larry Summers: ‘An isolated Japan will fall further behind’ (FT)

Japan's corporate sector saves too much. But Martin Wolf claims that higher wages and taxes could help eliminate the surplus

Weak private demand is Japan's dominant challenge (FT)