JPMorgan-Japan Equity Strategy TSE reforms Second chapter of corpora...-106514067

JPMORGANGlobalMarketsStrategy14February2024JapanEquityStrategyTSEreforms:SecondchapterofcorporategovernancereformsTSE-ledcorporategovernancereformeffortscontinuetogainmomentum.OnFeb1,EquityStrategytheTSEreleasedbestpracticestodateincorporatedisclosuresregardingmanagementwithawarenessofthecostofcapitalandstockprice.ThisfollowstheRieNishiharaACreleaseofalistofcompaniesdisclosingactionsinresponsetoTSEinitiativesandshouldleadtofurthercorporatemovesandamarketpickupbyencouraging(81-3)6736-8629companiestoenhancedialogueandengagementwithmarketparticipants.TSE-ledrie.nishihara@jpmorgan.comreformrepresentsthesecondchapterofcorporategovernancereformthatbeganasBloombergJPMANISHIHARApartofAbenomicsandhasbeenadriveroftherallyinJapanesestocksingeneralandJPMorganSecuritiesJapanCo.,Ltd.valuestocksinparticularsince2023.ThisnoteprovidesanoverviewofTSEreformsandtheirhistory,areviewofcorporategovernancereformstodate,andinvestmentYongGuo,CFAideasbasedonthesereforms.Near-term,weexpectafocusoncompanieswhichhaveyettodiscloseinitiativesaroundTSEreformandarethereforelikelytodoso,butthink(81-3)6736-8623highcapitalefficiencywillimpactlonger-termperformance.yong.guo@jpmorgan.comJPMorganSecuritiesJapanCo.,Ltd.•TheTSEpublishedalistofcompanieswithbestpracticesonFeb1,allowingMansiDasinvestorsandcompaniestoengageindialoguemoreeffectivelyt...