NEW YORK -- As if Japan's corporate sector didn't have problems with long-term economic deterioration and deflation, the stock market disaster and nonperforming loans, the U.S. Securities and Exchange Commission has added another headache. The issue at hand is the extent to which Japanese companies will have to comply with SEC regulations related to, among other things, the certification of the accuracy of financial reports and the appointment of outside directors.

Neither of these has been a burning issue in the discourse about corporate governance in Japan.

One Japanese company, Daiwa Securities, has canceled plans to list on the New York Stock Exchange, ostensibly because of disclosure requirements mandated by recent changes.