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Corporate Value-Focused Management

In Japan, improving the corporate value of listed companies has become an important issue. This is because improving the value of individual listed companies is crucial for ensuring the growth and development of the Japanese economy, as well as achieving an increase in national wealth.

At Tokyo Stock Exchange, Inc. (TSE), efforts are being made to support the implementation of Corporate Value-Focused Management in listed companies. Through the introduction of practical examples from exemplary companies that display excellent management awareness and solid management systems, we aim to further improve the understanding of corporate value enhancement and capital costs among Japanese listed companies. The hope is that this will serve as a catalyst for listed companies to take further steps towards growth.

In FY2012, TSE began giving out "Corporate Value Improvement Awards" to support the initiatives of listed companies in pursuing Corporate Value-Focused Management.

The selection criteria for the Corporate Value Improvement Awards is based on four elements of economic value creation: Quantifiable indicators (management indicators), Management Systems (management control systems), Motivation (evaluation and reward systems), and Mindset (cultivating and transforming corporate culture). In addition to these elements, Engagement (constructive dialogue with investors) is also considered an effort that supports sustainable corporate value improvement. Companies that practice Management that is Conscious of Cost of Capital through these aspects are recognized and awarded.

Management considering capital cost