Growing investor demand and more than a decade of economic stagnation are forcing Japanese companies to re-examine their traditional corporate governance practices, Standard & Poor's Corp. said in reports released Thursday.
"Standard & Poor's sees signs of a gradual shift in the philosophy regarding corporate governance in Japan, and companies are embracing greater transparency and disclosure," said Hiroko Kiguchi, a member of S&P's governance unit who compiled the reports.
Companies are increasingly moving toward more rigorous practices, the U.S. credit-rating agency said, pointing out that traditionally, boards have consisted solely of executive directors, and companies have been bound with cross-shareholding ties.