Long‐term Horizon and Financial Management: Japan's Competitive Advantage Over the United States

The time dimension of a country is a key determinant of the time horizon prevalent in the business sector. The long‐term horizons of Japan compared with the short‐term horizons of the United States are integral parts of their distinct business ideologies. There is a direct impact on their respective financial practices. A comparative analysis of the financial management ideologies, practices and techniques, within the framework of time horizon, offers an explanation of Japan's inordinate economic success in the global market.