In our previous blog, we explored the upcoming Tokyo Stock Exchange (TSE) regulation changes and the reasons behind them. A survey conducted by the TSE revealed that many global investors are dissatisfied with the availability and timing of English corporate disclosures in Japan.
Today, let’s examine another key concern raised in the survey: the content and quality of disclosures. Investors have made it clear that high-quality English translations of investor relations (IR) disclosures are essential.
Let’s take a closer look at what investors are saying about translated disclosures—and the challenges they face in accessing reliable information.
Investors Are Frustrated—Here’s Why
Does your company only publish shortened or summarized disclosures? While summaries may seem like a quick fix, they come with long-term risks. Global investors rely on comprehensive information to make informed decisions, and insufficient English disclosures create barriers. Here’s what they’re saying:
 | “We still struggle to get real-time high-quality information in English and many times would have to rely on translators.” (Continental Europe, Asset Management, Investment Decision) |
| “Often times when the disclosure in Japanese is much better than English“ (Continental Europe, Asset management company, Research) |
| “Not enough companies are disclosing in English sufficiently. Sometimes it is not even clear what information is missing in English vs Japanese.” (UK, Hedge Fund, Investment Decision) |
| “Lots of the companies disclose much less information in the English disclosure…” (UK, Asset management company, Research) |
| “If Japan wants to be part of a global market, the primary disclosure should be in English. In Europe, I haven’t seen major companies publishing important disclosure in French or German first. By prioritizing Japanese disclosure, Japan is sending a signal to the world that local investors are more important than foreign investors.” (Japan, Asset management company, Investment decision) |
A significant number of survey responses revealed widespread dissatisfaction with shortened disclosures. When investors can’t access the full information they need in English, they may take their capital elsewhere.
Is Generative AI Translation the Answer?
Do you rely on DeepL, ChatGPT, or other generative AI for your IR presentations and other significant disclosures?
While you might think the answer to providing complete and comprehensive disclosures is utilizing machine translation, you might want to think again. Investors notice—and they aren’t satisfied.
| “Calls are not published with English transcripts, and even English disclosures are often machine-translated and do not capture the meaning of the message very well.“ (UK, Asset Management, Research) |
| “IR presentations are difficult to translate using machine translation tools, so the importance of availability in English is high.“ (US, Asset Management, Research) |
| “Earnings reports and timely disclosure documents are too critical to be left to machine translation.“ (US, Asset Management, Research) |
| “Time consuming [to conduct] machine translation of Japanese documents.” (Continental Europe, Asset management company, Investment decision) |
| “IR presentations are the most important to have translated because they are very difficult to understand when I translate them to English using a machine translator. In addition, I believe they are most critical to understanding what the company does, how it portrays itself, its strategy, etc.” (US, Hedge fund, Research) |
Whether investors are reading your machine translation, or trying to translate your untranslated disclosures, the meaning of the material is getting lost in translation. In my experience, Japanese-to-English machine translation often produces unnatural, confusing language that requires extensive editing. Even when each word is meticulously translated, the overall meaning can still be misconstrued.
Takashi Kozu, Visiting Researcher at the Australia-Japan Research Centre at The Australian National University and CEO of the Securities Analysts Association of Japan, shared insights on the East Asian Forum regarding recent AI advancements and their potential impact on the upcoming TSE regulation changes.
Rapid advances in AI technologies will lower the language barrier when it is just a matter of translating Japanese information into English. Still, there remains another hurdle. The logic of persuasion in the anglophone world seems different from that of the Japanophone world. Even a perfect draft in Japanese might not be as remarkable in English, though understandable. The sequence of ideas expressed in translated texts should adhere to global standards and it is all the same for English disclosures of corporate management information. (Source: East Asia Forum Article)
The reality is that English and Japanese present information differently. Effective translation isn’t just about converting words—it requires restructuring sentences, reordering content, and ensuring clarity. This is a process that still demands a human touch. A rushed, automated translation won’t cut it. Investors need accuracy, context, and clarity—especially when making high-stakes financial decisions.
What This Means for You
April 2025 is approaching fast. The Tokyo Stock Exchange’s new rules will require simultaneous Japanese and English disclosures for Prime Market-listed companies. That means companies can no longer afford to treat English disclosures as an afterthought.
If your company wants to attract and retain international investors, now is the time to take English disclosures seriously. Clear, well-translated reports send a message that your company values all investors, not just domestic ones.
Don’t wait until the April 2025 deadline catches up with you. Ensuring your English disclosures meet investor expectations takes time, and getting it right now will save you stress later. Need help refining your translations? Let’s talk. Contact OWL today to ensure your disclosures are clear, impactful, and investor-ready.
Mia Omatsuzawa 大松澤実絵
最新記事 by Mia Omatsuzawa 大松澤実絵 (全て見る)
- 財務データをChatGTPに翻訳させるのは要注意 - 3月 21, 2025
- The No.1 Reason Japanese and English Writing Are Incompatible - 3月 19, 2025
- 日本語の文章を直訳の英語で表現するのが容易ではない最大の理由 - 3月 19, 2025
- 10 Quotes From Global Investors That Will Make You Rethink Your English Communications - 3月 13, 2025
- 英語開示の重要性を考え直す海外投資家からの声 - 3月 13, 2025