Lost in Translation

Akira Yamashita of Nikkei covered SquareWell and Kekst CNC’s inaugural investor survey on investors’ sentiments on Japan. The survey, conducted in the first half of 2025, gathered responses from several dozen overseas investors actively engaged in the Japanese market, representing approximately $22 trillion in assets under management.

Findings revealed that only 20% of investors consider Japanese companies’ communications and financial disclosures in English easy to understand, while 40% found them difficult. Key gaps highlighted include corporate governance information and long-term growth strategies, with many investors noting that English disclosures are often simplified translations lacking context and strategic depth.

Despite these challenges, 80% of respondents expressed optimism about Japanese companies’ investment outlook over the next five years. Governance improvements were seen as the single most influential factor in investment decisions, ranking above global macroeconomic trends. Investors also emphasized the importance of stronger engagement with outside directors and more transparent succession planning for top leadership roles.

As SquareWell Partner Ali Saribas noted, “Japanese companies are making progress, but without clear messaging, there is a risk their growth stories will not be understood. Transparent communication is critical to building investor confidence.”