During the Frontiers of International Finance symposium, Japan Exchange Group CEO Hiromi Yamaji remarked on the importance of dialogue between public companies and shareholders, indicating that corporate governance reform in Japan ‘has only just begun.’ This reflects a broader response to heightened shareholder activism within the nation’s business sector.
The Chief Executive Officer of Japan Exchange Group, Hiromi Yamaji, emphasized the growing necessity for enhanced communication between public companies and their shareholders during the Frontiers of International Finance symposium hosted by Nikkei. Acknowledging the acceleration of corporate governance reforms in Japan, he stated, “Corporate governance reform has only just begun.” This commentary arrives at a pivotal time when the business landscape in Japan is experiencing an increase in shareholder activism, underscoring the importance of a collaborative dialogue as essential for the future of corporate governance in the country.
Japan’s corporate governance framework has been historically characterized by its distinct features, including a focus on relationships and long-term partnerships that can sometimes hinder prompt decision-making and transparency. However, recent trends indicate a significant shift as increasing shareholder activism has prompted calls for reform. The Japan Exchange Group’s initiatives aim to align corporate practices with international standards, enhancing accountability and overall performance in the face of growing investor scrutiny.
In conclusion, the statements made by Hiromi Yamaji highlight a critical period in Japan’s corporate governance evolution. As shareholder activism grows, the push for reform is becoming indispensable. Encouraging open dialogue between listed companies and their shareholders may serve as a foundation for fostering improved governance practices.
Original Source: asia.nikkei.com
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