Tokyo Stock Exchange Initiative on Cost of Capital and Stock Price Conscious Management
Introduction
The Tokyo Stock Exchange (TSE) has advanced governance reforms through Japan’s Corporate Governance Code and related initiatives, with the aim of supporting sustainable growth and enhancing corporate value over the mid- to long-term. In April 2022, TSE restructured its market segments to provide an attractive cash equity market that underpins the sustainable growth and corporate value creation of listed companies, while gaining strong support from a diverse base of domestic and international investors.
Among the new market segments, the Prime Market has been positioned as one “centered on constructive dialogue with global investors.” Correspondingly, the revised Corporate Governance Code introduced specific…
