As the Japanese economy is undergoing a major
transformation under Prime Minister Shinzo Abe,
corporate governance at leading Japanese enterprises
from Toyota to Sony is also being shaken up. Companies
must now rely more on equity financing rather
than being able to continually finance operations
through debt based on their cozy relationships with
banks. This is the result of more than a decade-long
competitive disadvantage by once world-leading Japanese
companies, especially in the electronics industry
(including Sony and Sharp).