Listed subsidiaries get the ax in Japan after investor pressure

"In an era of growing pressure on corporate boards, Japanese conglomerates are scaling back their listed subsidiaries, a trend that critics argue could be inefficient and introduce conflicts of interest. The decline reflects mounting demands from activists, stock exchanges, and potential hostile takeovers, with Japan now having 212 parent-child listings—a drop from 285 in 2020—while still outnumbering Europe and the U.S. At 212, Japanese companies remain more numerous than their counterparts in other regions. NLI Research Institute’s Chizuru Morishita notes that companies are increasingly evaluating whether subsidiaries enhance shareholder value as activist investors gain influence."