“Tokyo Stock Exchange CEO” advises companies and investors to negotiate constructively, improve governance, and increase corporate value

"Tokyo Stock Exchange CEO" advises companies and investors to negotiate constructively, improve governance, increase corporate value, pointing out that 80% of companies in the Tokyo Stock Exchange's main market have already submitted plans.

On October 17, 2567, Reuters reported that Hiromi Yamaji, CEO of the Japan Stock Exchange Group , the parent company of the Tokyo Stock Exchange, stated that the Tokyo Stock Exchange's role going forward will be to facilitate constructive dialogue between companies and investors, rather than dictating how businesses should operate.

“The real power to create change lies in the hands of investors and shareholders,” said Hiromi Yamaji.

The Tokyo Stock Exchange's efforts to urge companies to improve their governance practices and corporate values ​​have seen domestic stocks rise, with the Nikkei 225 hitting a 34-year high in February 2567.

But forcing companies to change their management practices could backfire, as it could trigger a backlash. “Unless companies take action voluntarily,” Hiromi Yamaji said, “reforms will not be sustainable.”

In January 2567, the Tokyo Stock Exchange began publishing a list of companies that disclosed plans to enhance governance and increase corporate value, in a move to expose and condemn those that do not disclose such plans. By the end of September 2567, 80% of companies on the Tokyo Stock Exchange's Main Market had filed such plans.

Hiromi Yamaji said that from 2568 onwards, the Tokyo Stock Exchange plans to improve the list by focusing on companies that want to negotiate seriously with investors, while also presenting good and bad examples of shareholder engagement with companies. Investors also have a responsibility to engage with companies that have a long-term perspective rather than chasing short-term profits.

They added, "Our goal is to promote sustainable growth and improve organizational value in the medium to long term."

Yamaji also said he hoped Japanese Prime Minister Shigeru Ishiba would promote policies to boost private sector growth and continue former Prime Minister Fumio Kishida's efforts to promote a shift from savings to investment.

Reference: reuters.com

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