Asset Management One Steps Up Pressure on Japanese Boards

These initiatives arrive as corporate governance reforms, initiated under the late Shinzo Abe in 2012, reach a new stage of maturity. By dismantling traditional cross-shareholding structures that historically shielded boards from accountability, the Tokyo Stock Exchange is working to shed Japan’s reputation as a "value trap." Investors are responding to the shift; expected return on equity for Japanese companies has climbed to 10.5 per cent, well above the 15-year average of 8.14 per cent.

Asset Management One’s data confirms the trend, with 27 per cent of its recent corporate dialogues centered on strategy, up from 25 per cent the previous year. International interest continues to grow as firms deploy idle cash reserves, reigniting confidence in Japan’s growth potential despite persistent currency fluctuations. The transition from stagnation to active shareholder engagement marks a significant pivot for the world’s third-largest economy.