Tokyo Stock Exchange CEO said the aim is to facilitate constructive dialogue between companies and investors
Tokyo Stock Exchange: As of right now, the Tokyo Stock Exchange’s chief said on Thursday that the exchange would serve as a platform for positive communication between investors and firms, rather than dictating how they must operate.
“Investors and shareholders have the true power to bring about change,” Hiromi Yamaji, CEO of Japan Exchange Group, the company that runs the Tokyo Stock Exchange, said during a Tokyo news conference.
Domestic stocks have increased as a result of the exchange’s initiatives to encourage businesses to enhance their corporate value and governance procedures. In February of this year, the Nikkei share average broke through a 34-year high.
However, Yamaji said that forcing businesses to alter their management strategies may backfire and be ineffective.
“Reform isn’t sustainable unless companies take voluntary action,” Yamaji said.
In addition, Yamaji expressed his hope that Japanese Prime Minister Shigeru Ishiba will support measures to boost the expansion of the private sector and carry on his predecessor Fumio Kishida’s initiatives to promote a move away from savings and toward investments.
