Follow-up of Market Restructuring
On March 31, 2023, Tokyo Stock Exchange (TSE) requested that all listed companies on the Prime and Standard Markets take "action to implement management that is conscious of cost of capital and stock price."
| Action to Implement Management that is Conscious of Cost of Capital and Stock Price (published on March 31, 2023) |
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List of Companies That Have Disclosed Information
In consideration of the high interest shown by domestic and foreign shareholders and investors in companies' response to the reques, in January 2024, TSE has begun publishing a list of companies that have disclosed information in accordance with the request to inform investors of who is taking action, thereby encouraging companies to make a proactive effort. In January 2025, TSE has revised and begun publishing a new list in order to better support listed companies that are proactively working to implement said management.
<Contents of the Revision>
- Add a "Date of disclosure update" column for companies that have disclosed updates to the status of their initiatives
- Add columns for companies that wish to be contacted by institutional investors
- Set a time limit for "Under Consideration" status and require companies "Under Consideration" to explain their status
This list is updated monthly based on the status as of the end of the month.
| [New Format] List of Companies That Have Disclosed Information Regarding "Action to Implement Management That Is Conscious of Cost of Capital and Stock Price" (as of the end of Frbruary 2025) |
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| [Appendix] Status of Companies' Responses as of the end of February 2025 |
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(Note)
- ･The past lists are available on the sheets "Ref. List (MM DD, YYYY)" in the Excel file above.
(Note)
- ･For more information on the revision of the list, please refer to the following document
| Revision of the List of Companies That Have Disclosed Information Regarding "Management That Is Conscious of Cost of Capital and Stock Price" (published on September 27, 2024) |
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Scope of Companies on the List
In this list, for listed companies in the Prime and Standard Markets, disclosure status is determined as follows based on keywords described in the company's most recently submitted Corporate Governance Report as of the time when the data was collected.
- If the keyword "Action to Implement Management That Is Conscious of Cost of Capital and Stock Price" is found, the status is listed as "disclosed."
- If the keyword, "Action to Implement Management That Is Conscious of Cost of Capital and Stock Price (Under Consideration)" is found, the status is listed as "under consideration."
(Note)
- ･If none of the keywords are found, the company is not listed.
(Note)
- ･Along with one of the above keywords,
- If the keyword "Date of update: MM/DD/YYYY" is found, the date of their update is indicated on "Date of disclosure update" column.
- If the keyword "Disclosed in English" is found, the "English disclosure" column shall be set to "available".
| Reminder Regarding the Criteria for Inclusion in the List of Companies That Have Disclosed Information Regarding "Action to Implement Management That Is Conscious of Cost of Capital and Stock Price" (published on March 29, 2024) |
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Key Points and Examples Considering The Investor’s Point of View
In light of the expectations from many shareholders and investors in Japan and overseas for further progress in companies' initiatives, on February 1, 2024, TSE compiled and published the following report for listed companies in order to provide listed companies with reference material. This report is based on interviews with many investors in Japan and overseas, including a summary of the key points of initiatives that investors expect from companies, and also examples of initiatives that investors deemed as fulfilling these expectations.
On November 21, 2024, TSE has compiled and published a new set of "Cases Where Companies Are Not Aligned With Investors' Perspectives" for companies to use as a reference when reviewing and improving their own initiatives. In addition, TSE has expanded the key points and examples in "Key Points and Examples Considering the Investor’s point of view," which was released in February, 2024, based on recent feedback from investors.
- Latest Edition (published on November 21, 2024)
| Document 1 How to use Points and Case Studies |
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| Document 2 Cases Where Companies Are Not Aligned With Investors’ Perspectives |
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| Document 3 Key Points Considering The Investor’s Point of View |
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| Document 4 Case Studies (Prime Market) |
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| Document 5 Case Studies (Standard Market) |
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| Document 6 Reference material (Stock Prices After the Request) |
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- First Edition (published on February 1, 2024)
| Key Points and Examples Considering The Investor’s Point of View in Regard to Management Conscious of Cost of Capital and Stock Price |
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| [Appendix] Case Studies |
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- From the viewpoint of implementing management that is conscious of cost of capital and stock price, TSE requests that listed companies conduct a series of actions on an ongoing basis. This starts with gaining a proper understanding of their cost of capital and profitability based on the balance sheet, and continues with analyzing and assessing the current situation around these and the market valuation at board meetings, preparing and disclosing plans for improvement, and then using dialogue with investors to update them on the progress of these efforts.
Note: This request targets all listed companies on the Prime and Standard Markets.
- Through conducting these actions, it is expected that, based on the basic management policy established by the Board of Directors, the management team will take the lead in appropriately allocating resources with sufficient consideration of cost of capital and profitability. This could be by pushing forward initiatives such as investment in R&D and human capital that leads to the creation of intellectual property and intangible assets that contribute to sustainable growth, investment in equipment and facilities, and business portfolio restructuring.
- While share buybacks and dividend increases are considered effective means of improving profitability, if shown as such by the company's analysis of whether the balance sheet effectively contributes to value creation, TSE is not necessarily expecting companies to use only these or solve issues with a one-off response. Efforts are expected on a fundamental level to attain profitability in excess of cost of capital on a sustained basis and achieve sustainable growth.
(Note)
- ･Since analysis and discussion of the current situation must be carried out sufficiently before planning and disclosure can begin, TSE is not specifying a timeframe for the start date of disclosure, but requests as prompt a response as possible.
- Publication of a List of Companies That Have Disclosed and Notes on the Request notified to listed companies on October 26, 2023
| TSE to Publish a List of Companies That Have Disclosed Information Regarding "Action to Implement Management That Is Conscious of Cost of Capital and Stock Price" (notified to listed companies on October 26, 2023) |
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- Future Initiatives as of August 2024
| Future Initiatives Regarding "Action to Implement Management that is Conscious of Cost of Capital and Stock Price" (published on August 30, 2024) |
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| [Appendix 1] Listed Company Action Status |
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| [Appendix 2]Interviews with Investors, etc. |
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| [Appendix 3] Initiatives by Listed Company Support Group |
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