It is also very interesting to understand the Government role in corporate
governance system in Japan because it seems that the Japanese government do
intervene business decision through the industrial policy, which is often implemented through administrative guidance without specifically relying on formal laws(Hoshi,
Supra, p.862). Moreover, as mentioned, that Japanese corporate board consist with the
retired government office, this is itself show that the influence of the government over
private firm to intervene in the management if necessary. As a consequence of these
two, it indicates that the government has a very important role for corporate policy
formulation in which totally different than in Anglo-Saxon where rely on market
mechanism