In this podcast episode, we explore the fascinating world of the Japanese equity market and uncover exciting investment opportunities driven by attractive valuations and ongoing corporate governance reforms. Guest Masumi Nishida provides historical insights, discussing Japan’s deflationary past and cautious corporate practices that have resulted in significant cash reserves. The episode addresses challenges to shareholder activism in Japan, such as cross-shareholdings that limit influence, while highlighting recent regulatory changes that pave the way for hostile takeovers. Through case studies of Mitsubishi Belting and Ihara Science, listeners gain valuable insights into successful activist strategies and the promising potential for activism in Japan, even in the face of rising valuations and market pressures.
