TSE Cash Markets
Action on Cost of Capital-Conscious Management and Other Requests
TSE
In March 2023, TSE compiled specific details on the following three of the “TSE’s Future Actions in Response to the Summary of Discussions of the Follow-up Council” published in January 2023, and notified them to listed companies:
- Implementing management that is conscious of cost of capital and stock price (Prime and Standard listed companies)
- Improvements in dialogue with shareholders and disclosure regarding this (Prime listed companies)
- Appropriate use of the “explain” of “comply or explain” to contribute to constructive dialogue (TSE has provided key points and examples of this)
These documents summarize matters considered important for achieving sustainable growth and enhancing corporate value over the medium to long term, and while they are not mandatory under TSE rules, TSE requests that listed companies proactively implement them in consideration of the expectations of investors.
In addition, TSE hope that institutional investors, who carry out the dialogue with listed companies, will engage in constructive dialogue based on the disclosures and actions of listed companies in response to the above requests, with the aim of encouraging their sustainable growth and enhancement of corporate value over the medium to long term.
Action to Implement Management that is Conscious of Cost of Capital and Stock Price
(note)
- English translations of explanatory documents for “Improvements in Dialogue with Shareholders and Disclosure Regarding This” and “Appropriate Use of the “Explain” of “Comply or Explain” to Contribute to Constructive Dialogue” will be uploaded at a later date.
