Japan is unlikely to make sweeping reforms to rules on corporate governance in the wake of the Olympus Corp accounting scandal because of a largely hostile business lobby and a lack of political will to clip the wings of top executives.
The $1.7 billion (1.1 billion pound) scheme to hide two decades of investment losses at Olympus (7733.T) is one of Japan's worst accounting frauds and highlights long-standing criticism of lax corporate governance, yet analysts say only minor reform is likely.
They cite the opposition of business, a government weighed down by a mountain of voter-sensitive issues and a divided parliament, as well as an insular corporate culture that makes some wonder if tough new rules would prevent another Olympus anyway. (Reuters)
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