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Business trends

Foreign investors see value in Japan Inc's good governance

Changing business environment attracts activist funds and value investors

Japan Inc. is increasingly feeling the influence of overseas investment funds as corporate governance improves.   © Reuters

TOKYO -- As Japanese companies work to improve corporate governance, they are attracting more foreign investors looking to cash in on the changed business climate.

Statistics released by the Tokyo Stock Exchange and other Japanese bourses show that the ratio of foreign ownership in the country's stocks remained almost unchanged in the fiscal year through March 2018 from a year earlier at 30.2%. Despite this, Japan Inc. is increasingly feeling the influence of overseas investment funds.

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