![](https://wp-static.smartkarma.com/../assets/uploaded/2023/08/Smartkarma-Insight-Card-Square.png)
In today’s briefing:
- Japan Governance | The TSE Naughty List
- Ownership of Company Stock Is a Key in Managing the Company with the Same Goals as Shareholders
![](http://www.smartkarma.com/assets/plugins/a3-lazy-load/assets/images/lazy_placeholder.gif)
Japan Governance | The TSE Naughty List
- The TSE’s new efforts to encourage companies to disclose measures to improve their capital efficiency and stock prices correlate closely with general indicators of good governance.
- Over 60% of companies that we classify as “Proactive” have already disclosed their status, while only around one third of “Obstructive” companies have done so.
- Companies with higher levels of Board Independence and that are more aligned with shareholders are more likely to be better allocators of capital for long-term growth.
Ownership of Company Stock Is a Key in Managing the Company with the Same Goals as Shareholders
- Wouldn’t the shareholders of Mitsubishi Chemical want to either TOB for the growth of the subsidiary or invest the cash from the sale of shares in a value-generating business?
- It’s difficult to exclude the influence of the parent company in business decisions that impact significantly on the parent’s earnings and shareholding. Is continued parent-subsidiary listing desirable for subsidiary’s shareholders?
- The management of Nippon Sanso wants to continue the parent-subsidiary listing, but their small shareholding may make it difficult to manage the company from the same perspective as the shareholders.