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“Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement” – Tetsuro Takase, Senior Stewardship Officer at SuMi TRUST

While some investors may think of Japan as being behind when it comes to corporate governance, Tetsuro says this view is outdated. With the number of independent directors of Japanese firms increasing and the introduction of stricter requirements for firms by Japan’s Financial Services Agency, Japanese firms are now increasingly working towards improving their accountability to shareholders.

This can be seen in the move towards ending the unique phenomenon of cross-shareholding in Japan – the process by where companies hold each other’s stocks to boost cooperation and support the economy. One firm that is taking the steps to reduce their cross-shareholding is Obayashi Corporation, one of Japan’s largest construction companies.

In this article with Funds Global Asia, Tetsuro discusses how corporate governance is changing in Japan, what this means for cross-shareholding, and how this is leading the shift towards more effective strategic investments for sustainable long-term growth.

Read the full article here.

 

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