Tokyo / London, September 10, 2025 – Kekst CNC, the global strategic communications boutique, and SquareWell Partners, the global shareholder advisory firm, announced that they have jointly published the inaugural 2025 Investor Survey Report, capturing views from global institutional investors on what they expect next from Japanese listed companies.
Amid a historic resurgence in foreign investor interest in Japan’s capital markets, the report finds that while governance reforms have significantly improved structural credibility, investors are now looking for the next frontier: strategic clarity and meaningful dialogue.
The survey reveals increasing pressure on companies to articulate not only what they are doing, but why and to engage investors not just formally, but deliberately.
About the Survey
The 2025 Investor Survey “Bridging the Value Gap in Japan: Through robust governance and clear, impactful communication” was conducted via an online questionnaire in the first half year of 2025. Respondents included portfolio managers and stewardship teams with significant exposure to Japanese equities. Collectively, they manage over USD 22 trillion in assets, with representation across North America, Europe, and Asia.
Key Findings
- Narratives demonstrate shortcomings in governance and strategy. Only 10% of investors say Japanese companies effectively articulate their vision. This signals the need for more compelling storytelling around how corporate strategies support long-term value creation, and for greater clarity on governance structures to strengthen investor confidence.
- Leadership access is critical but limited, especially among outside directors. 95% of investors say access to top management is important to their investment decisions, with 65% calling it extremely important. However, only 10% report frequent engagements with outside directors, making it difficult to assess board effectiveness. According to survey respondents, key topics for engagements are corporate governance (80%) and medium-term business strategy (75%).
- Succession planning lacks transparency and credibility. 80% expect succession plans to include external candidates, yet very few companies articulate their process or timeline. This fuels uncertainty and reinforces perceptions of insularity, raising concerns about whether leadership selections consistently reflect merit and future needs.
- Investors expect earlier YUHO disclosures. Following guidance from the Financial Services Agency, significantly more listed companies with a March fiscal year-end disclosed their annual securities reports (YUHO) ahead of this year’s Annual General Meeting. However, 45% still published only afterwards. 92% of investors are calling for disclosure at least three weeks in advance. Companies that meet this standard demonstrate transparency and proactive engagement.
- English disclosure is essential but insufficient. While global investors continue to rely on English-language materials, only 20% find the strategic and financial information disclosed by Japanese companies easy to understand. Additionally, most say that English investor relations materials lack sufficient detail on corporate governance, as well as long-term strategy and growth plans.
What Companies Can Do
To meet investor expectations, companies are encouraged to:
- Make their strategic priorities and rationale clear, especially around transformation, capital allocation, and governance. This includes legacy structures such as cross-shareholdings, where investors increasingly expect companies to explain the business rationale or phase-out timeline.
- Show how governance structures (such as board composition or committees) directly support long-term value creation. For example, by explaining how outside directors contribute to specific business decisions or transformation themes.
- Provide selective access to outside directors or incorporate their perspectives into public disclosures.
- Outline high-level CEO succession plans, including governance structures and decision-making processes.
- Ensure English disclosures are not only accurate but also easy to follow and strategically positioned for the global audience, such as by including executive summaries, investor-tailored messages, and narrative consistency across IR, PR, and sustainability materials.
“Investors aren’t looking for perfection - they’re looking for progress. The quality of a company’s governance — communicated through clear disclosure and direct engagement — is fundamental to shaping its equity story and earning long-term market trust.”
"This isn’t about copying Western norms. It’s about expressing your value in a way that global investors understand - clearly, consistently, and on your terms. Governance reform raised the floor. But strategic dialogue is what will raise the ceiling.”
The report also underscores a growing concern that dialogue risks becoming a box-checking exercise. These findings show how both investors and companies can step up to improve meaningful investor dialogue and global capital market attractiveness.
Bridging the Value Gap in Japan: Through robust governance and clear, impactful communication
Download the full report
About Kekst CNC
Kekst CNC, the global strategic communications boutique of Publicis Groupe, has pioneered strategic communications to help its clients achieve their most important business goals for more than 50 years. With offices in the world’s corporate and financial centres, it uses insight, creativity and judgement to partner with clients seeking to grow, transform or protect their organizations. For more information, visit www.kekstcnc.com.