As Japanese companies face mounting governance reforms and heightened global scrutiny, the gap between how governance is communicated and how investors perceive it is becoming increasingly consequential. By aligning communications with investor priorities, companies can attract long-term shareholders and strengthen their resilience against opportunistic market pressures.

This survey – a collaboration between SquareWell Partners, a leading shareholder advisory firm, and Kekst CNC, a global strategic communications boutique – provides insights into how foreign equity investors assess governance practices, communications, and financial disclosures.

Respondents include Portfolio Managers and Stewardship Teams from both active and passive investment managers, collectively overseeing more than $22.7 trillion (approximately ¥3,200 trillion) in assets – representing some of the largest institutional investors active in Japan. The findings point to both challenges and opportunities in developing strategic communications that support a compelling equity story – knowledge that can help companies engage more effectively with investors and strengthen long-term relationships.