ASIA GOVERNANCE MONITOR - ISSUE 01 - THE JAPAN CASE STUDY
A cheap stock can remain cheap for decades. Understanding what could change that requires looking closely at who controls the company, how capital is allocated and whether shareholders can influence either.
We are launching the Leopard Asia Governance Monitor, a series exploring corporate governance, shareholder activism and investment ideas across Asian markets.
In the first iusse "Japan: How the post-war growth machine became the Japan discount" we look at Japan and trace how the institutions that supported Japan’s post-war growth became a source of persistent valuation discounts, and how governance reform and shareholder engagement are challenging those structures.
We examine how investors have translated broad policy principles into changes in capital allocation, corporate strategy and board accountability. We also consider the unresolved conflicts surrounding listed subsidiaries and the protection of minority shareholders.
Our central investment question is always is the same - what makes an undervalued company capable of realising its value?
Answering it requires more than identifying surplus cash or assets worth more than the share price. It requires understanding the barriers to change, the incentives of those in control and the catalysts that could prompt action.
That is the connection this series will explore accross Asia, from governance structures and activist campaigns to specific investment opportunities.