Japan Inc. Should Take a Look in the Mirror

Markets are hailing Abe as a turnaround expert for injecting new vitality into the long-moribund Japanese economy. Yet all he has done so far is pressure the Bank of Japan to open its wallet. "Abenomics" really amounts to a hope that radical monetary easing will boost asset prices, which in turn will encourage companies to expand, pay workers more and hire new ones. Yet how can that happen when companies are unrepentant about their mistakes? The flood of cash hasn’t opened executives to new ways of thinking, ushered more outsiders into the boardroom or women into the workforce, or prompted companies to get out of unprofitable businesses. Companies still hoard cash they should be passing along to shareholders and workers through dividends and higher wages.