How Japanese corporates are paying closer attention to minority shareholders

Improved engagement

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Richard Kaye of Comgest
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Richard Kaye of Comgest

Japan's corporate profit growth continues to outpace that of developed and developing market competitors. Prime Minister Shinzo Abe was certainly a catalyst, with his governance, shareholder focus and corporate tax reforms.

However, the trend in Japanese corporates' growing attention to the minority shareholder was evident previously, as cross shareholding unwinding required many companies to engage with stakeholders other than their parent or main bank. This has fostered closer attention to core business strength, which is accretive to the shareholder. As we see the domestic investor at last returning to the Japanese market with a sharpened spotlight on returns, we believe fundamental stockpicking can unlock some attractive opportunities. Shiozumi: Why investors should shrug off scepticism on Japan ...

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