Playing the Japanese Market: Review

With careful research and a clear-eyed view of what motivates businessmen, [Robert Zielinski] and [Nigel Holloway], in "Unequal Equities," go a long way toward shattering that myth. In the process, their refreshing look at the ways of corporate Japan demonstrates how the hard rules of finance, rather than the fuzzy virtues of company songs, lifetime employment (available to only a fraction of Japanese workers) or many other famous management techniques, have been key to its competitive prowess. As Mr. Zielinski, an American stock analyst in Tokyo, and Mr. Holloway, an English business journalist, make clear, Japanese managers have long regarded finance -- obtaining capital in abundance and as cheaply as possible -- as critically important. The main difference between them and their American competitors is that they succeeded in shaping their stock market to satisfy their needs while imposing few demands, such as the payment of high dividends. Indeed Mr. Zielinski and Mr. Holloway present a relatively simple thesis: Big corporations have rigged the Japanese stock market. These illustrations can be repetitive, but they make this insightful book readable. Still, what "Unequal Equities" lacks are the voices of Japan's top executives. As any journalist in the country knows, getting them on record can be devilishly difficult. But it would have added to the book's authority had the authors got some Japanese managers to verify the book's conclusions, or at least discuss them.