Tokyo Stock Exchange (TSE) has decided to renew the Listed Company Awards System in 2012 by establishing the “Corporate Value Improvement Award” to recognize companies which aim to improve corporate value by including investor concerns in management decisions. At the same time, TSE will introduce advance announcements of award themes regarding the “Corporate Activity Awards”.
Amidst the long-term stagnation of the Japanese economy, there has been increasing demand for management devoted to corporate activities which respect the position of investors/shareholders and improve corporate value.
Proactive measures at listed companies contribute to improving the attractiveness and international competitiveness of the Japanese capital market. It is hoped that such actions will benefit the listed companies themselves by securing risk money both domestically and from overseas for effective use in the capital market.
This renewal is aimed at promoting listed companies to engage in more of such initiatives. We hope this combination of “Corporate Activity Awards” which focus on a company’s external activities, and “Corporate Value Improvement Awards” which center on the quality of corporate management will lead to greater effectiveness of the Listed Company Awards System.
The outline of the renewal is as follows.
Renewal of Listed Company Awards
The Listed Company Awards shall be renewed in 2012.
| Point 1 | Establishment of “Corporate Value Improvement Award” for listed companies dedicated to improving corporate value by including investor concerns in management decisions |
| Point 2 | Advance Announcement of “Corporate Activity Award” Themes to promote proactive measures which contribute to fulfilling and enriching the Code of Corporate Conduct |
In addition to the “Corporate Activity Award” which recognizes external/formal areas, the “Corporate Value Improvement Award” has been established to award areas of content/quality. In this way, TSE will continue working to improve the appeal of its market.
I. Corporate Value Improvement Award
Overview of Corporate Value Improvement Award
1. Overview
| (1) Purpose | To spread and promote management aimed at improving corporate value from TSE’s stance as a market operator. |
| (2) Eligibility | Listed companies with high corporate value and management practices deemed to contribute to the appeal of the TSE market, such as by improving corporate value through initiatives which consider investor concerns such as capital cost. |
| (3) Selection | All domestic listed companies are eligible for selection. |
| (4) No. of Awards | 1 company. Furthermore, the final candidates will be announced. |
| (5) Period | Once per year. |
2. Selection Method
Selection will be performed by a committee of experts.
Chairman Kunio Ito (Professor, Hitotsubashi University, Graduate School of Commerce)
Member Atsuto Sawakami (Chairman, Sawakami Asset Management, Inc.)
Member Scott Callon (Partner and Chief Executive Officer, Ichigo Asset Management, Ltd.)
3. Backers
Japan Investor Relations Association, The Securities Analysts Association of Japan, Japan Securities Dealers Association, Japan Securities Investment Advisers Association, Japan Venture Capital Association, Nikkei, Inc.
(Reference) Selection Process
II. Corporate Activity Award
Advance Announcement of Award Theme
1. Purpose
The Corporate Activity Award is aimed at spreading and promoting corporate activities (*) deemed desirable by TSE in its position as a market operator.
TSE hopes to promote proactive responses from listed companies by announcing the theme of this award in advance.
*Companies eligible for this award are, out of those which already employ the Code of Corporate Conduct included in TSE’s listing rules or which have a high likelihood of employing the Code in the future, those which engage in corporate activity deemed to contribute to the fulfillment/enrichment of the TSE Code of Corporate Conduct, such as by leading new trends through influencing the corporate activities of other companies by pioneering conduct.
2. Award Theme for FY2012
The award theme for FY2012 is:
“Designation of Outside Directors as Independent Directors”
- Companies which designated an outside director(s) as new independent director(s).
- Companies which decided to designate an outside director(s) as new independent director(s) for the following fiscal year.
- Companies which have already designated an outside director(s) as independent director(s).
…or other companies which have enacted other such proactive measures.
