Daily BriefsESG

Daily Brief ESG: An Option for Implementing Serious Corporate Governance Reforms to Achieve Results Are… and more

In today’s briefing:

  • An Option for Implementing Serious Corporate Governance Reforms to Achieve Results Are…
  • Setting Goals Is Key to Achieving Corporate Governance Reform, Rather than the Means to Achieve Them


An Option for Implementing Serious Corporate Governance Reforms to Achieve Results Are…

By Aki Matsumoto

  • Companies that have been unable to achieve growth in corporate value and stock price increases need to shift their management thinking toward sustainable growth in corporate value.
  • When analyzing 1,793 companies in Metrical Universe by independent director ratio group, companies with an independent director ratio of 50% or more show excellent capital profitability and stock price valuation.
  • One option for implementing serious corporate governance reforms in the next revision of the Corporate Governance Code is to raise the standards to a level that cannot be easily manipulated.

Setting Goals Is Key to Achieving Corporate Governance Reform, Rather than the Means to Achieve Them

By Aki Matsumoto

  • Only a few companies fulfill the objectives of Corporate Governance Code. The reason why many fail to achieve them is simply because they do not aim for those goals.
  • The reason why many companies could not improve capital profitability can be explained by the fact that they had not made the sustainable expansion of corporate value a management goal.
  • Even if a company cannot achieve capital profitability that exceeds its cost of capital, it will not be delisted, so many companies may still be seeing through the TSE’s seriousness.

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