Amakudari

Definition of 'Amakudari'


A Japanese business practice in which senior politicians retire to executive or high-profile positions within the corporate realm. Meaning "descent from heaven," amakudari as a practice shifts retired bureaucrats to industries related to the public sector work that they retired from, creating a strong bond between private and public sectors.

Investopedia explains 'Amakudari'


Amakudari as a practice has been increasingly associated with corruption and a tie to old, outdated ways of doing business. The practice is considered corrupt because it creases a strong incentive for retired bureaucrats to resist reforms, since their high level jobs are directly related to their connections with the government. It is considered outdated because Japanese businesses often operate in a very hierarchical manner, with particular emphasis placed on seniority. This has been said to make advancement through merit difficult.



comments powered by Disqus
Hot Definitions
  1. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  2. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  3. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  4. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  5. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  6. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
Trading Center