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A Structural Transformation Model of Corporate Governance: An Integrated Evaluation System Centered on Long-Term Employee Investment and Non-Financial Value Metrics

Authors: Kawauchi, Satoshi;

A Structural Transformation Model of Corporate Governance: An Integrated Evaluation System Centered on Long-Term Employee Investment and Non-Financial Value Metrics

Abstract

This paper proposes a structural transformation of corporate governance that shifts from short-term shareholder profit maximization to long-term value creation through sustained investment in employees. By integrating non-financial metrics—such as human capital, ESG performance, engagement, and social contribution—into a unified valuation framework, the model quantifies how employee-focused strategies enhance productivity, innovation, and long-term profitability while reducing risk premiums and volatility. Mathematical simulations suggest improved enterprise value stability and lower capital costs, alongside positive macroeconomic effects such as higher labor participation and demographic resilience. The framework offers a measurable pathway toward stakeholder-centered, sustainable capitalism.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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