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Mar. 30, 2018 JPX-R Publication of Principles for Preventing Corporate Scandals


Japan Exchange Regulation (JPX-R) has published "Principles for Preventing Corporate Scandals."
In recent years, a large number of corporate scandals have emerged at listed companies and received frequent media coverage. It is said that corporate scandals are no longer uncommon. These scandals hurt the reputation of the company and damage its corporate value. Going beyond the consequences for individual companies, a capital market where high-profile scandals at listed companies are a common occurrence would lose its credibility due to perceptions of insufficient corporate governance.

In February 2016, JPX-R published the "Principles for Responding to Corporate Scandals," which provides guidelines on how to address corporate scandals, enabling listed companies to restore confidence quickly and recover corporate value steadily. Now, JPX-R has compiled a new set of principles that focus on preventive (ex-ante) measures against corporate scandals in addition to the aforementioned principles on responsive (ex-post) measures. By these principles, JPX-R intends to share its findings on corporate scandals that it has acquired through its operations, for the sake of enhancing the credibility of Japan's capital market.

JPX-R hopes that these principles will be shared with investors who engage in constructive dialogue with companies, as well as with the lawyers and accountants who provide professional advice to companies, thereby encouraging the companies to embody better corporate discipline.

Principles for Preventing Corporate Scandals icon-pdf
(Reference) Principles for Responding to Corporate Scandals icon-pdf


Japan Exchange Regulation Listed Company Compliance Department
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