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Abenomics: Roadmap to corporate reform

Abenomics reforms could bring significant corporate improvements that rekindle interest in Japanese equities. By Hiroki Sampei

SUSTAINABLE GROWTH: Japanese auto giant Toyota Motor Corporation's engineer Sadayoshi Koyari displaying the 30th anniversary model of the Land Cruiser 70 in Tokyo last month. More Japanese companies such as Toyota are embracing the Corporate Governance Code, designed to elevate the broad governance culture among Japanese companies, and encourage them to target sustainable growth in corporate and shareholder value.

LAST year was a great year for Japanese equities. Investors returned to the world's third-largest economy on a wave of euphoria surrounding Prime Minister Shinzo Abe's bold ambition to drag Japan out of a deflationary stagnation that dates back to 1990.

The first two arrows of Abenomics...

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