Japanese firms reform governance to satisfy shareholder demands

Japanese companies are shifting strategies to address investor demands, moving beyond simple share buybacks. Major firms like Toyota and Seven & i Holdings are restructuring, replacing executives, and selling non-core assets to enhance governance and satisfy shareholders. Toyota plans to reduce its board size and increase independent members, while Seven & i has appointed a foreign CEO amid a takeover battle. Other companies, including Panasonic and Rohm Semiconductor, are also restructuring to improve management and financial performance. This trend reflects a broader corporate governance reform in Japan, with more companies adopting outside directors. Investors are now seeking substantial changes rather than just financial returns, pushing for better management practices and higher dividends.