TOKYO — This June marks the tenth annivers of Japan’s adoption of the Corporate Governance Code, which set rules for shareholder rights, disclosures and more. The code was nonbinding but took direct aim at ineffective boards and encouraged listed companies to be more transparent.
Although change has only come gradually, foreign investors are finally seeing signs of companies becoming more receptive to reevaluating their capital allocation strategies, especially following a series of policy initiatives, as well as pressure from the increasing presence of activist investors.
