Abstract
This paper discusses how governance issues can impact the value of Japanese companies. Japan’s Corporate Governance Code was first introduced in 2015, and has since been revised twice since then. The latest revision emphasizes gender and other types of diversity, as well as the importance of outside directors.
The number of female outside directors increased from 159 in 2014 to 1,835 in 2021. How did the addition of female outside directors improve corporate value and management? Previous research on the issue finds both positive and negative aspects of the appointment of female directors on corporate value. This is due to its short history and small number of female directors. This paper interviewed nine companies listed on the Tokyo Stock Exchange from three industries and analyzed them using a qualitative method known as SCAT. I conclude that the introduction of female outside directors had a positive effect on the corporate value.
