TSE Updates Request on Cost-of-Capital-Conscious Management for Listed Companies

The Tokyo Stock Exchange has revised its March 2023 request concerning management practices that are conscious of cost of capital and stock price for all companies listed on the Prime Market and Standard Market. The update adds new compiled key points focused on investor expectations, initiatives, and appropriate allocation of management resources. This replaces the prior version of the request while maintaining the same fundamental framework. Listed companies on both market segments should review the updated guidance as a reference for their management initiatives, and investors are explicitly asked to reference these materials during engagement and constructive dialogue with issuers to support medium- to long-term corporate value improvements.

Affected parties: All Prime Market and Standard Market listed companies on the Tokyo Stock Exchange should be aware of this updated request. Companies that have already implemented cost-of-capital-conscious management practices may want to review whether their initiatives align with the new investor expectations and resource allocation guidance. Institutional investors and other market participants are encouraged to reference these materials when engaging with listed companies on corporate strategy and capital allocation decisions.