Roles of Outside Directors in Cooperative Financial Institutions

10 Pages Posted: 20 Mar 2011

See all articles by Nobuyoshi Yamori

Nobuyoshi Yamori

Kobe University - Research Institute for Economics & Business Administration

Kozo Harimaya

Ritsumeikan University - Biwako-Kusatsu Campus

Kei Tomimura

Nagoya University

Date Written: March 18, 2011

Abstract

As the governance of financial institutions is becoming an important issue, there are many papers empirically investigating the governance issues of banks, which are stock companies. However, cooperative structured financial institutions (co-ops), which have a unique governance structure different from stock companies, play a substantial role in the Japanese banking markets, and, therefore, it is worth examining whether some governance scheme developed for stock companies are effective at cooperative financial institutions. Our results showed that the presence of outside directors at co-ops (“Shinkin Banks”) contributes to an improvement in efficiency.

Keywords: Corporate Governance, Outside Directors, Cooperative, Shinkin.

JEL Classification: G21

Suggested Citation

Yamori, Nobuyoshi and Harimaya, Kozo and Tomimura, Kei, Roles of Outside Directors in Cooperative Financial Institutions (March 18, 2011). Available at SSRN: https://ssrn.com/abstract=1790147 or http://dx.doi.org/10.2139/ssrn.1790147

Nobuyoshi Yamori (Contact Author)

Kobe University - Research Institute for Economics & Business Administration ( email )

2-1, Rokkodai cho
Nada-ku
Kobe, 657-8501
Japan

Kozo Harimaya

Ritsumeikan University - Biwako-Kusatsu Campus ( email )

1-1-1 Noji-Higashi
Kusatsu, Shiga 525-8577
Japan

Kei Tomimura

Nagoya University ( email )

Furo-cho, Chikusa-ku
Nagoya-City, 4648601
Japan

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