Tokyo Stock Exchange Calls for Increased Emphasis on Stock Prices and Capital Efficiency

In an unusual move, the Tokyo Stock Exchange (TSE) has urged companies listed on its Prime and Standard sections to promote management that places greater focus on stock prices and capital efficiency.

The request is aimed at boosting the growth potential of the companies and attracting investments from Japan as well as abroad, which would in turn contribute to revitalizing the Tokyo stock market.

The management teams of the listed companies face the challenge of raising their awareness about the importance of how best to use funds raised from shareholders and banks to increase profit-earning capacity.

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