Japan’s Efforts to Boost Investor Returns

Japan’s Push for Efficient Capital Allocation and Increased Shareholder Returns

Japan is taking steps to improve the efficiency of its listed companies’ capital allocation and increase shareholder returns. The Tokyo Stock Exchange (TSE) will soon release its first monthly list of public companies that have shared their plans for optimizing capital management. The Japanese government and the TSE are also working on increasing corporate board independence and female representation. This push for better corporate governance is being driven not only by the TSE but by the entire government. It is part of Prime Minister Fumio Kishida’s plan to make Japan Inc more attractive to both foreign and domestic investors.