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Mario Oshima

Economic Inequality in Japan and
Recent Business Trend toward Stock Holders' Priority


March, 2008

 
     
   
     
 

Abstract

 
 
This paper gives a brief sketch of the debate on economic inequality in recent Japan and suggests that a sense of inequality is widely held among ordinary Japanese people now. It then points out that business trend for stockholders' priority having prevailed in Japan is causing astonishingly high rise of stock dividends and executives' salaries and bonuses in company profit and must be one factor for the above mentioned general sense. In fact Japan experienced that business trend in prewar times when criticisms on greedy stockholders and company executives went very high. Thinking about Peter Drucker's fundamental insight into the ownership of a joint stock company and Japanese people's preferences for a company with even priorities for employees, management and stockholders, the author of this paper thinks that it is dangerous to put too much stress on stockholders' priority in company management.

 
 
 
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