Poll: Japan firms see more listing-related burdens as TSE, shareholder pressure mount
06/12/2023 23:00
By Makiko Yamazaki
TOKYO, Dec 7 (Reuters) - Most Japanese companies feel
burdens related to being listed have increased amid growing
pressure from shareholders and regulators for better governance
and capital strategies, a Reuters monthly poll showed on
Thursday.
The results reflect how listed companies have come under
deeper scrutiny in Japan, where about half of them are trading
below their book value, at a time listing requirements continue
to tighten.
Among 155 listed respondents in the poll, 85% said they were
feeling larger listing-related burdens, although a majority of
them also saw benefits of having the listing status including
advantages in hiring talent.
As reasons for larger burdens, 85% cited increased
disclosure requirements, as the list of disclosure items has
expanded in recent years to include such items as gender gaps in
workforce and sustainability risks.
The Tokyo Stock Exchange's 8697.T call this year for
listed companies to improve their use of capital has also
weighed, with 68% of the respondents citing it as a reason for
heavier burdens.
The bourse's reform push, hailed by investors as a remedy to
Japan's unusually high number of chronically undervalued stocks,
has sparked a slew of share buybacks, unwinding of
cross-shareholdings and some management buyouts (MBO).
Faced with higher costs associated with listing, 30% of the
respondents said they have recently re-examined the significance
of being a listed company, while only 14 respondents said they
have considered going private.
The latest poll also showed Japan's big employers may follow
this year's bumper pay hikes with another round in 2024, as 51%
said they could raise wages beyond a 2.8% rise in Japan's core
consumer prices next year.
Wage talks early next year would be closely watched as
strong pay hikes are expected to help lift household spending
and give the central bank the conditions it needs to finally
roll back massive monetary stimulus.
Still, 60% said wage increases would be possible only for
less than 3%, as they face ballooning energy and materials
costs.
The survey was conducted for Reuters by Nikkei Research on
Nov. 21-Dec. 1, with firms responding on condition of anonymity
to allow them to speak more freely.
(Reporting by Makiko Yamazaki; Editing by Chizu Nomiyama)
((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))