Japan's regulators get serious about corporate governance

Japanese regulators are increasingly cracking down on corporate-governance scofflaws, causing companies to scramble to clean up their act. That could make more of Japan's corporations -- long viewed as taking good governance lightly -- more attractive to investors.

In a rare move, the Tokyo Stock Exchange announced earlier this month that it is delisting cosmetics maker Kanebo, which had been found to have been overstating its profits for years. A week later, the Odakyu Electric Railway, which operates one of Tokyo's most important commuter lines, suddenly admitted that three of its publicly traded subsidiaries had falsified parts of their financial statements.

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