Dear All,
This is Yuya Shimizu from Hibiki Path Advisors SPC. As we enter this year’s annual general meeting season, the market is once again seeing a significant number of shareholder proposals, including one of our own to Tomoe Corp. In many situations, the level of confrontation between shareholders and companies appears to be intensifying.
At its core, shareholders invest in a company because they support its corporate success and shareholder value creation. When relationships between shareholders and corporates boards become adversarial, it often suggests that certain issues have persisted over time. It is extremely frustrating and saddening to see, that, such friction is being reported without a humble and thorough reflection on these underlying causes by the management over time.
We would therefore like to repost our casual views on the ideal state of capitalism and the future direction of Japanese companies. This three-part series is extensive, but each section can be read independently. We hope you will take the time to read it at your convenience.
“A Historiographical Study of the Cross-Shareholding Structure in Japan and our Six Suggestions to the Management” (2023)
#1 Six Suggestions (English)
A paper arguing that, as Japan’s cross-shareholding era comes to an end, listed companies should proactively build a more constructive shareholder base.
“Merits and Challenges of Being Publicly Listed in the Era of Unsolicited Takeovers” (2024)
#2 Merits and Challenges of Being Publicly Listed (English)
A reflection on the strategic meaning of public listing in an era of unsolicited takeovers, calling on companies to reassess whether remaining listed, pursuing an MBO, or joining another corporate group best serves long-term corporate value.
“Japan’s Capital Markets Perspective” (2026)
#3 Japan’s Capital Markets Perspective (English)
A reflection on Japan’s transition toward a more fully market-based capital market, urging listed companies to ground their strategic decisions in a quantitative understanding of corporate value and the core logic of capitalism.
Disclaimer: The opinions, views, and analyses expressed in this report are solely those of the author in his personal capacity and do not represent the official views, policies, or investment decisions of any asset management company, investment fund, or other organization with which the author is affiliated or otherwise related. This report is provided solely for general informational purposes and to raise issues for consideration, and does not constitute, nor should it be construed as, an offer, solicitation, recommendation, or invitation to acquire, sell, or hold any specific securities or other financial instruments. Furthermore, nothing contained herein constitutes legal, accounting, tax, or other professional advice. The information contained in this report is based on sources that the author believes to be reliable as of the date of preparation; however, no representation or warranty, express or implied, is made as to the accuracy, completeness, or timeliness of such information. The contents of this report are subject to change without notice due to future developments or changes in circumstances. Neither the author nor any of the author’s affiliates or related parties shall have any obligation or liability whatsoever for any loss or damage arising from or in connection with any actions taken based on the contents of this report. This is a translated version of the report initially prepared in Japanese. In case of any inconsistency between the English language version and the Japanese language version, the meaning of the Japanese language version shall prevail unless otherwise expressly indicated.