November 21, 2024
Japan looks to keep companies honest about cross-shareholding cuts #JapanFinance

Japan looks to keep companies honest about cross-shareholding cuts #JapanFinance

CashNews.co

TOKYO — Japan will require listed companies to disclose more information if they reclassify strategically held shares as being owned for investment purposes, amid concerns that some businesses are concealing their actual intentions, Nikkei has learned.

This comes as institutional investors step up pressure on companies to unwind “strategic” shareholdings — commonly used in Japan to maintain business relationships — that do not contribute to growth. Around 2,600 publicly listed enterprises, or two-thirds of the total, cross-hold shares from at least one company.