Which governance model features cross-shareholdings within a business group, large insider boards, and the main bank as primary monitor?

Question

BlackTom AI · Accepted Answer

The Japanese keiretsu system features the cited characteristics: cross-shareholdings among group firms, large insider-dominated boards, and the main bank acting as the primary monitor.

1. Relevant knowledge points and concepts
- Keiretsu (Japanese network/keiretsu model): groups of firms linked through business relationships and mutual equity stakes; historically centered on a “main bank” that provides finance and monitoring. Boards tend to include insiders and bank representatives. Cross-shareholdings reduce takeovers and stabilize control.
- U.S. shareholder primacy model: dispersed shareholders, strong capital markets, independent boards, shareholder activism, market for corporate control.
- German stakeholder/codetermination model: significant employee representation on supervisory boards, relationship banking, and broader stakeholder interests (but not the same cross-shareholding/main-bank centrality as keiretsu).
- Scandinavian social democratic model: high social welfare orientation, strong labor protections, stakeholder focus; corporate governance emphasizes social goals, not a main-bank monitoring network.

2. Step-by-step reasoning
- Cross-shareholdings: Keiretsu are defined by interlocking equity stakes among member firms; this matches the question’s “cross-shareholdings” phrase.
- Large insider boards: Keiretsu boards often include executives from member firms and bank representatives, creating insider-dominated governance.
- Main bank as primary monitor: The keiretsu’s defining monitoring mechanism is the main bank that provides lending, oversight, and informal governance.
These three features taken together are the hallmark of the Japanese network/keiretsu model.

3. Calculations or intermediate steps
- Not applicable (no numeric calculation required). The reasoning is conceptual and comparative.

4. Why the correct answer is correct
- The combination of mutual cross-shareholdings, insider-heavy boards, and a central monitoring bank uniquely identifies the keiretsu model in Japan. No other listed model places a single “main bank” at the center of corporate monitoring while simultaneously relying on cross-shareholdings.

5. Why other options are incorrect
- U.S. shareholder primacy model: emphasizes dispersed ownership, external market discipline, and independent boards — opposite of insider boards and cross-shareholdings.
- German stakeholder/codetermination model: includes strong bank relationships and cross-shareholdings in some firms, but its defining feature is employee representation on supervisory boards (codetermination), not the main-bank-centered keiretsu network.
- Scandinavian social democratic model: focuses on social welfare, regulatory frameworks, and stakeholder outcomes rather than cross-shareholding networks and a main bank monitor.

6. Conclusion
All features described match the Japanese network/keiretsu model; therefore the correct answer is The Japanese network/keiretsu model, which matches the provided answer.

Which governance model features cross-shareholdings within a business group, large insider boards, and the main bank as primary monitor?单项选择题

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