Corporate Social Responsibility and Corporate Finance in Japan

Megumi Suto was a professor of Graduate School of Business and Finance of Waseda University for April 2016–March 2018, a professor of the Graduate School of Finance, Accounting and Law of Waseda University for April 2004­–March 2016, and a professor of Faculty of Economics of Chuo University for April 1993–March 2004. She had positions of visiting professor of Hitotsubashi University and Osaka University, and visiting researcher of Oxford University and Starling University. She received her Ph.D. in economics at Keio University. She was a board member of Japan Society for Economic Studies of Securities for 2001–2009, a board member of Japan and Economic Association for 1997–2009, and an editorial member of Japan Securities Analyst Journal for 1997–2015. Her main interest is in corporate governance and functions of financial system, and she has conducted research on corporate social responsibility and corporate governance in the context of Japanese financial system. Professor Hitoshi Takehara received his Ph.D. in management science and engineering from the University of Tsukuba. After working at the MTB Investment Technology Institute (current Mitsubishi UFJ Trust Investment Technology Institute) as a researcher, he started his academic career as an assistant professor at the Institute of Socio-Economic Planning, University of Tsukuba. Since 2006, he has been a professor at Waseda University Graduate School of Business and Finance. Professor Takehara’s main research interest is in asset pricing models and portfolio management. He had been a President of Nippon Finance Association from 2010 to 2013.

“Both investors and companies are involved in the environmental, social, and governance (ESG) boom in Japan. This book brings to light comprehensive research on the relationships between corporate social responsibility (CSR) and corporate finance and investment. I recommend that professional investors read this book before making ESG investments. Corporate managers can also find helpful suggestions for CSR activities in the book.” (Translated from Japanese, Hidetaka Kawakita, Securities Analyst Journal, Vol. 2, 2019)“This fascinating book provides the first comprehensive empirical research on the corporate social responsibility of Japanese companies viewed from a corporate finance perspective. The book is an outstanding contribution that offers many remarkable empirical results.” (Translated from Japanese, Motornari Kurasawa, The Journal of Financial and Securities Markets, Vol. 5 (3), 2019)

• 1. Introduction: Corporate Social Responsibility and Japanese Corporations.- 2. Corporate Social Responsibility Awareness and Practices of Japanese Corporations.- 3. Responsible Investment and Institutional Investors.- 4. Corporate Social Performance and Corporate Financial Performance.- 5. Corporate Social Performance and Ownership Structure.- 6. Market Perceptions of Corporate Social Responsibility and Cost of Capital.- 7. Corporate Social Responsibility Awareness and Management Forecast Bias.- 8. Effects of Corporate Social Performance on Default Risk: Structural Model-based Analysis on Japanese Firms.- 9. Relationship between Technological Innovation, Corporate Social Performance, and Corporate Financial Performance.- 10. Conclusion—The Future of Corporate Social Responsibility and Corporate Finance in Japan.- Epilogue.- Index.