FSA Japan's Report on the 'Internationalization of Japanese Financial and Capital Markets'

24 June 2009

"There appears to be no end to the misconduct by listed companies, and also to the implementation of capital policies, that severely undermine the interests of minority shareholders, " the report states.

There appears to be no end to the misconduct involving listed companies, and to the implementation of capital policies that severely undermine the interests of minority shareholders, the report says.

 

Still, deep concerns have been expressed by domestic and foreign investors alike about the corporate governance of listed companies in Japan, and there have been suggestions that this has been a major factor in driving down the overall market valuation of Japanese stocks.

 

Also it has been pointed out that despite the initiatives undertaken in recent years to strengthen corporate governance standards in Japan, there has been a lack of information provided to investors in this regard. Therefore measures need to be undertaken to actively communicate improvements made on governance framework in Japan as well as initiatives undertaken by individual companies.

 

The study group hopes that serious efforts should be promoted, aimed at improving corporate governance.

 

Since October 2008, the Financial System Council’s Study Group on the Internationalization of Japanese Financial and Capital Markets has held eight sessions of deliberations on the state of the corporate governance of publicly listed companies.

 

Based on these deliberations, the Study Group compiled and published a report entitled, “Toward Stronger Corporate Governance of Publicly Listed Companies” on June 17, 2009.

 

Report by the Financial System Council’s Study Group on the Internationalization of Japanese Financial and Capital Markets : Toward Stronger Corporate Governance of Publicly Listed Companies

 

Overview of Report by the Financial System Council’s Study Group on the Internationalization of Japanese Financial and Capital Markets : Toward Stronger Corporate Governance of Publicly Listed Companies

© FSA Japan