Shiro Hayashi, Director of Research, and Masumi Nishida, Senior Research Analyst, recognize the Tokyo Stock Exchange (TSE) as Japan’s most powerful activist, serving as the primary catalyst for reform in recent years. These steps towards greater transparency and increased focus on minority shareholder rights undoubtedly represent positive catalysts for the long-term return potential of the Japanese market. For disciplined, long-term investors, the TSE’s reforms provide valuable tools in our engagement toolkit, empowering us to advocate for positive change and unlock excess returns through engagement with management.
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