The head of the Tokyo Stock Exchange attacked Japanese companies on Wednesday, criticising their weak corporate governance and warning that poor financial disclosure risked undermining the country’s capital markets.
Atsushi Saito, president of the Tokyo Stock Exchange, said a lack of disclosure by corporations about their capital policies, failure on the part of investors and others to provide proper oversight and a widespread lack of understanding of what it means to be a public company were obstructing the efficient use of capital.
Mr Saito said Japan was still “an underdeveloped country” in terms of disclosure and called for greater transparency, third party checks and oversight of publicly listed companies.
“Unless we do that, [since] the capital efficiency [of companies] is exceptionally low, if we continue this way, the future of this country is extremely dark,” Mr Saito said at a UBS conference on corporate governance in Tokyo.
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