The Tokyo Stock Exchange (TSE) has published a list of companies that have disclosed specific measures that will lead to a rise in stock prices in order to encourage listed companies to manage their business with an awareness of market valuation.
In March last year, the TSE asked companies listed on the Prime and Standard lists to create specific measures that would lead to a rise in their stock prices and present them to shareholders in order to encourage management that is conscious of their market reputation.
As of the end of December last year, we compiled a list of companies that had disclosed specific measures.
Looking at the breakdown, in the top-tier prime market,
3% of companies disclosed specific measures and 12% disclosed that they were "under consideration," for
a total of
40 companies.
◇ In the standard market, 9% said they had already disclosed, and 815% said
they were under consideration,
for
a total of 11 companies.
By industry, the disclosure rate exceeded 6% in the banking, electricity and gas, and steel industries, while only about 300% in the service industry, information and communications industry,
and retail industry.
The TSE considers it a problem that many companies have low valuations in the market, such as PBR = price-to-book ratio, which represents how many times the stock price is compared to the net assets per share, is less than 80x.
In addition to updating the list on a monthly basis, TSE intends to introduce examples that have received high praise from investors in order to encourage corporate managers to recognize the significance and necessity of their responses and to encourage further efforts and information disclosure.