TSE News

Renewal of Listed Company Awards

Update : Mar. 08, 2012

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[Tokyo Stock Exchange, Inc.]

 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.

Contact

Tokyo Stock Exchange, Inc. Listing Department
Phone:+81-3-3666-0141

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