TSE Cash Markets

In March 2023, Tokyo Stock Exchange, Inc. (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.”

While many listed companies are taking steps to respond to the request, with 49% of Prime Market listed companies and 19% of Standard Market listed companies disclosing information as of the end of 2023, many shareholders and investors in Japan and overseas have expressed their expectations for further progress in companies’ initiatives, and many listed companies have requested that TSE publish key points and case studies.

Given this situation, in order to provide listed companies with reference material, TSE has compiled and published a report, based on interviews with many investors in Japan and overseas (a total of over 90 investors, approximately 30% domestic and 70% overseas, consisting mainly of active funds and other investors that focus on medium- to long-term corporate value enhancement), 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.

TSE would like to ask listed companies to continue their proactive efforts, taking into consideration the contents of this document as well.

In addition, TSE would also like to ask investors to actively engage in constructive dialogue with listed companies while referring to the content of this document, with the aim of achieving medium- to long-term improvements in the corporate value of listed companies.