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Whatever the truth behind Michael Woodford’s hasty exit as chief executive of Olympus, the debacle is another blemish on the image of corporate governance in Japan.

Woodford, who was dumped by Olympus last week, said his ouster was the result of daring to question fees paid in acquisitions before he joined the board. The company denied any wrongdoing Monday, blaming differences in management style.

Investors reacted by sending the shares down by almost 24%.

In the last few months alone, Tokyo Electric Power, Kyushu Electric Power, Daio Paper have all run into well-publicized governance problems.

At the root of the issue are compliant shareholders that rarely stand up to management. Case in point: Tepco shareholders in June voted to reappoint the entire board, bar an absent president, despite the energy company’s fumbled response earlier in the year to the world’s worst nuclear accident since Chernobyl.

At the same time, Japan’s conservative corporate culture resists interference. Last week, Kyushu Electric admitted to trying to manipulate public opinion on nuclear power, and then compounded the problem by holding back some key findings of its own ‘independent’ report on the scandal.

This insular culture is reinforced by senior executives who often stay around long after they leave office as advisers or chairmen, wielding influence behind the scenes with little accountability to shareholders. At the same time, there are few restrictions on companies holding shares in each other which means large blocks of voting shares are held by groups with little interest in causing a stir. At Olympus, for instance, one fifth of the company’s shares are held by four pillars of Japan Inc.–Nippon Life Insurance, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Tokio Marine Holdings –and 12 out of 15 board members are career Olympus executives.

Regulators and lawmakers have made some efforts to clean things up. The Tokyo Stock Exchange, for instance, implemented new rules in 2009 barring companies from appointing ‘outside directors’ from lenders or subsidiaries. The government has also moved to tighten rules around executive compensation, for instance.

But there is still much work to be done. Given the latest brouhaha at Olympus, piecemeal gestures at improving specific issues seem to be having little impact on the overall governance climate.

A broader overhaul of governance in Japan would come too late for Woodford, but it would be a step forward for shareholders in Japanese companies.

Chinese companies with idle cash on their books are keener to lend money out at premium rates rather than invest it in their businesses.

Beijing's anti-inflation measures may have slowed business momentum in industries ranging from property to manufacturing, but they have opened up an opportunity for cash-rich state-owned enterprises as hundreds of thousands of small firms are turning to high-yielding private loans for survival.

In the first eight months of this year, 40 listed companies lent a combined 8 billion yuan ($1.25 billion) to cash-strapped firms while 22 listed companies borrowed 12 billion from their state parents, according to stock exchange filings and numbers from data provider Wind Information Inc. The highest interest rate on the transactions reached 24.5%, nearly four times the one-year benchmark lending rate.

More tellingly, central bank data show that while the new yuan loans issued by banks fell 10% year-on-year to 4.17 trillion yuan in the first half of 2011, the amount of new borrowing between companies more than doubled year-on-year to 702.8 billion yuan.

Direct borrowing and lending between companies is technically banned in China, but companies can lend their money to designated borrowers through banks. Interest rates are decided by companies, while banks, acting as intermediary, collect fees without taking on any of the credit risk.

For some listed firms, intercompany lending has been an important source of revenue. For example, between January and June, retail company Sunny Loan Top Co. earned 55.5 million yuan from its lending business, accounting for 85% of the company's net profits during the period, according to the company's semi-annual report . Meanwhile, Wuhan Jianmin Pharmaceutical Group Co. in February lent 150 million yuan to a hotel operator at an annualized interest rate of 20% in a deal that accounted for roughly a third of its first-half net income.

For companies to lend out money rather than use it for investment is neither new nor unusual in China. The Chinese government long addressed inflation by slamming the door on bank lending, which typically puts the squeeze on small private firms and encourages them to turn to the informal lending market.

One of the most impressive examples of a company choosing to lend out is cash is Tsingtao Brewery Co., which became China's first dual-listed state-owned company and the first Chinese state-owned company to list on the Hong Kong Stock Exchange after raising roughly 1 billion yuan through IPOs in Shanghai and Hong Kong in 1993. Within two years of those offerings, the beer maker had loaned out nearly all of the money, which was supposed to have been spent on expanding its breweries.

At the time, China was under a severe credit squeeze as Beijing struggled to bring down inflation as high as 24%.

Though not as strong as in was the mid-1990s, China's inflation a three-year high of 6.5% in July and is widely expected to remain at high levels for some time. In addition, a frothy property market and volatile global markets mean China is facing a more complicated situation this time around.

To rein in rapid rises in consumer and housing prices and fend off speculative capital inflows, the government has raised benchmark interest rates five times and increased the proportion of deposits banks must keep with the central bank nine times since the last quarter of 2010.

The tightening measures have resulted in a credit squeeze in the banking system, making capital pricier for companies, especially small private firms and property developers.

Though small businesses account for about 80% of China's urban employment, it's difficult for them to get loans from banks in times of tightening as they are more vulnerable to the slowing economy.

Currently, ‘around 90% of China's small and medium-sized enterprises rely on the private financing system, making it very popular,’ the official Xinhua News Agency recently quoted Gu Shengzu, a senior member of China's parliament as saying.

In some areas, interest rates on private financing markets have risen to 120% on an annualized basis, Gu said.

Real-estate companies, pinched by higher funding costs as growing public discontent over surging housing prices has prompted the government to tighten credit policy for developers, are another feeder at the trough of private financing. Roughly 30% of the 20 billion yuan in new borrowing revealed revealed by stock exchange filings and the data from Wind Information went to fund property firms, with developers typically paying interest rates of at least 12%.

In addition, there are signs that the credit crunch in the banking system has hit some blue chip developers who are keeping sales prices on hold despite worsening cash flows. Cofco Property (Group) Co., a subsidiary of China's largest food manufacturer Cofco Group, said in July that it got a three-year credit line of 3.7 billion yuan from six of its sister companies.
‘The internal transaction highlights the financial support of the shareholder for the listed company in a circumstance in which property developers' funding channels are restricted by the country's strengthening macro-controls in the real-estate industry,’ said Cofco Property.

Guo Tianyong, director of China Banking Institute at the Central University of Finance and Economics, said it's not unusual to see the sharp increase in intercompany lending given China is putting the brake on bank lending.

‘The intercompany lending has its inevitability. But on the other hand, it's to some extent setting back the government's efforts to control aggregate demand (meaning total amount of demand for goods in the economy) and rein in inflation,’ he said.

A South Korean marine went on a shooting spree at an island base on Monday morning, killing four and injuring one and himself, military officials said.

The shooter, a corporal who was only identified by his last name Kim, was taken into custody. The names of the victims weren’t announced.

Col. Kim Tae-eun, a spokesman for the Ministry of National Defense, said at a briefing that an investigation was proceeding into a motive for the shooting.

The incident happened at a post on Ganghwa Island, one of five islands South Korea has long controlled in waters that North Korea has disputed since the 1970s. Last year, North Korea shelled one of the other five islands, killing two South Korean soldiers and two civilians.

South Korea’s 650,000-person military is conscription-based, with all able-bodied men required to serve in it for two years before age 27.

In 2005, a South Korean soldier threw a grenade into a bunk house where other soldiers were sleeping, killing eight. Five soldiers were injured in a similar incident in 2008, when a soldier threw a grenade into a room of sleeping troops. -By Evan Ramstad, The Wall Street Journal; Evan.Ramstad@wsj.com

The NBA on Wednesday imposed a 100,000 U.S. dollar fine on Kobe Bryant who using a homophobic slur aimed at a referee during Tuesday night’s game.

“Kobe Bryant’s comment during last night’s game was offensive and inexcusable,” NBA Commissioner David Stern said in announcing the fine. “While I’m fully aware that basketball is an emotional game, such a distasteful term should never be tolerated. Accordingly, I have fined Kobe $100,000.

“Kobe and everyone associated with the NBA know that insensitive or derogatory comments are not acceptable and have no place in our game or society,” Stern said.

There was no immediate response from Bryant. The Lakers guard is expected to be questioned about the fine and his comment when he meets with reporters at tonight’s game in Sacramento, California, according to John Black, the Los Angeles Lakers vice president of public relations.

Bryant issued a statement earlier on Wednesday insisting that what he said “should not be taken literally.”

“My actions were out of frustration during the heat of the game, period,” Bryant said. “The words expressed do not reflect my feelings towards the gay and lesbian communities and were not meant to offend anyone.”

TNT’s coverage of the game showed Bryant appearing to make the comments to referee Bennie Adams while sitting on the bench after being called for a technical foul during the third quarter of a 102-93 victory over the San Antonio Spurs at Staples Center. Audio was not available.

“What a disgrace for Kobe Bryant to use such horribly offensive and distasteful language, especially when millions of people are watching,” said the Human Rights Campaign, which describes itself as the nation’s largest lesbian, gay, bisexual and transgender civil rights organization.

The group welcomed the NBA’s decision to fine Bryant, saying “such swift and decisive action will send a strong and universal message that this kind of hateful outburst is simply inexcusable, no matter what the context.”

“We applaud Commissioner Stern and the NBA for not only fining Bryant, but for recognizing that slurs and derogatory comments have no place on the basketball court or in society at large,” said the group’s president Joe Solmonese.

The opposition in eastern Libya took further steps toward establishing its legitimacy Wednesday, meeting with a U.S. envoy and loading its first shipment of oil for export since the uprising began.

U.S. envoy Chris Stevens, a former deputy chief of mission at the U.S. Embassy in Tripoli, met with members of the rebels’ provisional government in talks both sides said were aimed at giving the Americans a better sense of the opposition leadership and how the U.S. can help them.

‘Most of our discussions revolved around the provisional council, the nature of the members of the provisional council and all the representatives from other areas [of Eastern Libya],’ said Hafiz Abdel Goga, a spokesman for, and member of, the Transitional National Council in Benghazi.

Mr. Goga said the council hoped the talks would lead to U.S. recognition of the rebel government, which has been formally recognized only by France, Qatar and Italy.

Meanwhile, a Liberian-flagged oil tanker departed the northeastern port of Marsa al-Hariga carrying one million barrels of oil, said an official with the rebel-controlled Arabian Gulf Oil Co. The shipment, of over $100 million in oil, marks the first sale of oil by the rebel government since the uprising began on Feb. 17. Revenue from two oil shipments that departed eastern Libya in February went to the government-controlled National Oil Company in Tripoli.

On Wednesday, Col. Moammar Gadhafi’s forces attacked another rebel-controlled oil installation in the desert in southeastern Libya, the third consecutive day of such strikes in what rebel officials believe is an attempt to deprive the opposition of oil revenue.

‘Gadhafi is trying his best to stop our efforts to take advantage of this natural resource by bombarding oil fields,’ said Mr. Goga. He said rebels had halted oil production for the time being because of the attacks.

Before halting production Wednesday, the rebels were producing about 100,000 barrels per day. Libyan oil exports have plummeted from 1.3 million barrels a day before the crisis.

International diplomatic activity continued Wednesday, with discussions about providing incentives for members of the Gadhafi regime to defect, about finding a possible exit for Col. Gadhafi himself and his family, and about securing a truce. There were few signs any initiatives were advancing.

A former U.S. congressman, Curt Weldon, a Pennsylvania Republican, was scheduled to meet with Col. Gadhafi in Tripoli Wednesday, on what Mr. Weldon said was a freelance trip to urge the Libyan leader to step down. State Department spokesman Mark Toner said Mr. Weldon was ‘in no way acting on behalf of the United States government.’

Col. Gadhafi, meanwhile, appealed in a letter to President Barack Obama for a halt in what the Libyan leader called ‘an unjust war.’

‘We can confirm that there was a letter, but obviously it’s not the first,’ said White House spokesman Jay Carney. ‘And the issue of a ceasefire is….words are different than action.’

The European Union was in discussions on lifting a travel ban and asset freeze on Moussa Koussa, the former Libyan foreign minister who defected to the U.K. last week, an EU official said. The U.S. government lifted sanctions on him Monday, in a move widely seen as an effort to encourage further defections.

Amy Chua may be the Tiger Mom, but Hong Kong’s Corlin twins are trying their best to earn the title of Tiger Cubs.

When the essay ‘Why Chinese Mothers are Superior’ by Ms. Chua was published in the WSJ in January, parents world-wide engaged in a debate over how best to raise their kids. But in Hong Kong, the response was particularly acute. In a city where many parents fret over their kids’ interviews for pre-school at 2 two years old, many saw a bit of Ms. Chua within themselves.

But the South China Morning Post, the region’s biggest English-language daily newspaper, took it one step further, crowning a local tiger mom in Rosalind Corlin, and called her 10-year-old twins, Estephe and Perrine Corlin, as her tiger cubs. The paper profiled the mother and her own high-pressure parenting, and detailed her children’s achievements: They were judo champs, chess competitors, avid sailors and had written the International General Certificate of Secondary Education. It came out a few days after the first article was published that they ended up scoring straight A’s for the exam ─ news that only generated them more celebrity in the city.

So what do overachievers do when they’re on the top of their fame? Write a tell-all book, obviously. Self-published and with photos cribbed from the family album of the playful twins on an orange cover, the book, titled ‘The Roar of the Tiger Cubs,’ was released on Friday for sale in Hong Kong. All proceeds from the book will be donated to non-profit organization that promotes literacy.

‘I received many questions about how they do it, and how they are so successful,’ explained Mrs. Corlin, the mother. ‘A friend of ours suggested we write a book to respond to all the questions. Most of the questions came from parents, and quite a few from those whose babies weren’t even born. I asked Estephe and Perrine if they were interested in the a book, and they said they would do it.’

The two write alternating chapters, much of which were excerpts from their diaries (their mother said she had never read them until then). The young writers say that they hope to inspire other kids, drawing from their own accomplishments.

‘I liked writing about judo,’ said Perrine. ‘Judo is a gentle way of fighting. It’s not punching or kicking. It’s more like throwing people without hurting them. Judo taught me to never give up and fight to the end.’

And while the intended audience was for kids and parents alike, Estephe admitted that he might be writing over the heads of most other 10-year-olds.

‘I wrote about sailing, and how physics applies to sailing,’ he said. ‘I wrote about Newton’s Law, which is pretty complicated.’

Will a sequel be coming in a few months? ‘Probably not,’ he laughed. ‘But maybe. You never know.’

Lady Gaga’s new single “Born This Way” has been out for less than a day, and it’s already garnering fantastic praise, explosive criticism and scathing comparisons to Madonna。

Twitter critics say that the song bears an all too striking resemblance to Madonna’s 1989 hit “Express Yourself” — and the two song titles were major trending topics on Twitter Friday. Wrote one Twitter user: “Is it just me or does #bornthisway remind you of an 80s @Madonna song? i liked it the first time, when it was called #expressyourself.”

It wouldn’t be the first time Gaga’s been compared to Madonna: Gaga has repeatedly channeled Madonna’s provocative looks–including her trademark cone bras and underwear-as-outerwear. Gaga paid homage to the Material Girl in her video for “Alejandro,” channeling both “Like a Prayer” and “Vogue” videos. And legendary music producer Quincy Jones even told UsMagazine.com that he thinks Gaga is “Madonna Jr.”

The change was evident at the auto show that opened Monday in Guangzhou, a southern industrial hub, where foreign makers plus their local Chinese partners showcased or discussed new efforts to be going after emerging middle-class consumers in China’s less-developed hinterland. The annual income of plenty of of those consumers is now climbing above 50,000 yuan, or about $7,500, which executives think about the threshold for automobile possession in China.

Foreign auto makers in China are dusting off older designs as they scramble to come up with China-only brands of low-cost cars in response to a surge in demand for affordable vehicles from new middle-class buyers.

Meanwhile, General Motors Co.’s (GM) Wuling joint venture, which makes no-frills microvans, has decided to build a plant for the venture’s new China-only brand, Baojun, GM spokesman Johan Willems said on the sidelines of the Guangzhou show. The joint venture, with Shanghai-based SAIC Motor Corp. (600104.SH), started production of its first Baojun-brand passenger vehicle last month at a plant in the southern province of Guangxi, with designs to start selling the automobile early next year.

Honda Motor Co. (HMC, 7267.TO) of Japan on Monday unveiled its first production model for the Linian brand, known as Everus in English. Honda plus its joint-venture partner, Guangzhou automobile Group Co. (GNZUF, 2238.HK), plan to launch the Linian subcompact sedan next year. The joint venture between Nissan Motor Co. (NSANY, 7201.TO) of Japan plus Dongfeng Motor Group Co. (DNFGY, 0489.HK) is also promoting its new China-only brand, Qichen, by demonstrating an idea model at the show. The small-car brand, whose English name is Venucia, is due to launch in 2012.

not one of the auto makers disclosed a pricing strategy in Guangzhou Monday.

The current plant, which produces the Baojun sedan plus other cars, has annual capacity of over 100,000 vehicles. Willems said the new plant, also in Guangxi, will open by the end of 2012 with capacity to make 400,000 vehicles a year.

The growth in demand for such cars, even as higher-end vehicles continue to sell well in huge cities, shows how in commercial terms ‘China isn’t a single country. It’s plenty of countries within a country,’ Wale said.

Demand for such low-cost louis vuitton outlet, especially in the country’s interior, equates to ‘a , huge market,’ Kevin Wale, head of China operations for U.S.-based GM, said on the sidelines of the auto show. Low-cost models in China already account for sales of six million vehicles a year– bigger than major markets such as spain plus Japan, he said.

The aim of such efforts is to lower development costs to accomplish the prices companies say they need to compete with cars from Chinese auto makers such as Geely automobile Holdings Ltd. (GELYY, 0175.HK) plus Chery automobile Co. (CHERY.YY) focusing on low-end vehicles of between 50,000 yuan plus 90,000 yuan for small cars plus 30,000 yuan to 50,000 yuan for commercial microvans.

The boom in demand for lower-end cars caught plenty of foreign auto makers by surprise. One response: automobile makers such as GM plus Honda are letting their China joint ventures use vehicle designs plus technologies that they recently retired. In GM’s case, it permitted Wuling to tap GM for what one executive described as a number of the existing ‘architecture components’ it already developed over time for its global relatives of compact cars, a number of which it no longer makes use of. For Linian’s first automobile, Honda plus its partner Guangzhou Auto said they used the platform for a previous version of Honda’s City model, while Nissan designs to make use of the outgoing Tiida’s underpinning know-how to develop Qichen’s first automobile, according to market researcher J.D. Power & Associates. Nissan declined to comment.

Some critics say foreign auto makers’ move to generate China-only cars plus brands could backfire by fostering stronger competitors in their deep-pocketed Chinese partners, plenty of of them huge state-owned enterprises.

Hironori Kanayama, chief executive of Honda’s joint venture with Guangzhou Auto, said on the auto show’s sidelines that Honda isn’t concerned about such a feasible outcome. ‘What’s absolutely key for our survival is to always innovate plus go a few steps ahead in our know-how,’ he said.

However, a person familiar with the situation said Toyota’s joint venture with FAW Group Corp. has been developing a China-only automobile based on an older, outdated Corolla platform for a feasible brand it might launch in China. Earlier this year, the joint venture showed off the model under development at a ceremony to open a newly expanded know-how middle in Tianjin, according to the person.

At the Guangzhou auto show, some notable competitors were absent from the China-only brand trend. Toyota Motor Corp. (TM, 7203.TO) of Japan, for example, didn’t show or discuss any product aimed at the burgeoning market for sub-60,000-yuan cars plus says it’s no immediate designs to start a China-only brand.

Contrary to common belief social media websites such as Facebook do not weaken personal ties, they strengthen them in unique ways for different age groups, according to a new study.

The rapid spread of Facebook, which has more than 500 million users worldwide, has prompted concerns about its negative effects, but researchers at the University of Texas have reached a different conclusion.

“Our findings suggest that Facebook is not supplanting face-to-face interactions between friends, family and colleagues,” said S. Craig Watkins, an associate professor of radio, TV and film who headed the research team.

“In fact, we believe there is sufficient evidence that social media afford opportunities for new expressions of friendship, intimacy and community.”

The researchers questioned 900 college students and recent graduates about how and with whom they interact on Facebook.

More than 60 percent of Facebook users said posting status updates was among the most popular activities, followed by 60 percent who wrote comments on their profile and 49 percent who posted messages and comments to friends.

The researchers also found that although about the same number of men and women use Facebook, they do so in different ways.

“There is a noteworthy difference in orientation in how to use a tool like Facebook. We found that for women the content tends to be more affectionate, and (they) are especially interested in using it for connection,” said Watkins.

“For men, it’s more functional,” he added.

Watkins pointed out that, for example, women are more likely to post pictures of social gatherings with friends, while men are more likely to post pictures of hobbies, or post a political or pop-culture related link.

When I was growing up, my father always stopped what he was doing and listened while I’d breathlessly fill him in on my day. For him, no subject was off-limits. When I was a lanky and awkward 13, Dad coached me on how to stand and walk like a lady. At 17 and madly in love, I sought his advice on pursuing a new student at school. “Keep the conversation neutral,” he counseled. “And ask him about his car.”

I followed his suggestions and gave him daily progress reports: “Terry walked me to my locker!” Guess what? Terry held my hand!” Dad! He asked me out!” Terry and I went steady for over a year, and soon Dad was joking, “I can tell you how to get a man; the hard part is getting rid of him.”

By the time I graduated from college, I was ready to spread my wings. I got a job teaching special education at a school in Coachella, California, a desert town about 170 miles from home. It was no dream job. Low-income housing across the street from the school was a haven for drug users. Street gangs hung around the school after dark. Many of my charges, emotionally disturbed 10-to 14-year-old boys, had been arrested for shoplifting, car theft or arson.

“Be careful,” Dad warned me during one of my frequent weekend visits home. He was concerned about my living alone, but I was 23, enthusiastic and naive, and I needed to be on my own. Besides, teaching jobs were tight in 1974, and I felt lucky to have one.

“Don’t worry,” I reassured him, as I loaded up the car to start my trip back to the desert and my job.

Several evenings later I stayed after school to rearrange my classroom. Finished, I turned out the light and closed the door. Then I headed toward the gate. It was locked! I looked around. Everyone – teachers, custodians, secretaries – had gone home and, not realizing I was still there, stranded me on the school grounds. I glanced at my watch — it was almost 6 p.m. I had been so engrossed in my work that I hadn’t noticed the time.

After checking all the exits, I found just enough room to squeeze under a gate in the rear of the school. I pushed my purse through first, lay on my back and slowly edged through.

I retrieved my purse and walked toward my car, parked in a field behind the building. Eerie shadows fell across the schoolyard.

Suddenly, I heard voices. I glanced around and saw at least eight high-school-age boys following me. They were half a block away. Even in the near darkness I could see they were wearing gang insignia.

“Hey!” one called out. “You a teacher?”

“Nah, she’s too young — must be an aide!” another said.

As I walked faster, they continued taunting me. “Hey! She’s kinda cute!”

Quickening my pace, I reached into my shoulder bag to get my key ring. If I have the keys

in my hands, I thought, I can unlock the car and get in before…My heart was pounding.

Frantically, I felt all over the inside of my handbag. But the key ring wasn’t there!

“Hey! Let’s get the lady!” one boy shouted.

Dear Lord, please help me, I prayed silently. Suddenly, my fingers wrapped around a loose key in my purse. I didn’t even know if it was for my car, but I took it out and clutched it firmly.

I jogged across the grass to my car and tried the key. It worked! I opened the door, slid in and locked it — just as the teenagers surrounded the car, kicking the sides and banging on the roof. Trembling, I started the engine and drove away.

Later, some teachers went back to the school with me. With flashlights, we found the key ring on the ground by the gate, where it had fallen as I slid through.

When I returned to my apartment, the phone was ringing. It was Dad. I didn’t tell him about my ordeal; I didn’t want to worry him.

“Oh, I forgot to tell you!” he said. “I had an extra car key made and slipped it into your pocketbook — just in case you ever need it.”

Today, I keep that key in my dresser drawer and treasure it. Whenever I hold it in my hand, I am reminded of all the wonderful things Dad has done for me over the years. I realize that, although he is now 68 and I am 40, I still look to him for wisdom, guidance and reassurance. Most of all, I marvel at the fact that his thoughtful gesture of making the extra key may have saved my life. And I understand how a simple act of love can make extraordinary things happen.