One World Link株式会社（OWL）は、企業コミュニケーションのための正確かつ効果的な英語の提供を専門としています。14年以上に渡るインベスターリレーションおよびコーポレートコミュニケーションの経験を活かし、OWLは日本企業がグローバルな投資家とより強固な関係を築くためのサポートをしています。
Are you happy with the response your company’s English disclosures receive from overseas stakeholders? Do you struggle to gain the confidence of overseas investors?
A 2023 survey conducted by the Tokyo Stock Exchange (TSE) revealed that 72% of overseas institutional investors are dissatisfied with the current state of English corporate disclosures in Japan. This survey targeted mainly institutional investors in the United States, the United Kingdom, Continental Europe, and Asia-Pacific, all of whom pointed to delays and the absence of English materials for small- and mid-cap companies as primary reasons for their dissatisfaction. (TSE Survey)
In response to such mounting criticism, the TSE announced that companies listed on the TSE Prime Market are required to simultaneously disclose material corporate information, including financial results and timely updates, in both Japanese and English beginning April 2025. This new regulation aims to address longstanding concerns from foreign investors, who often rely on English disclosures as their primary source of investment information.
Let’s take a further look into what overseas investors struggle with and why.
Investor Testimonials
Open-ended responses from overseas institutional investors pointed to several common issues, mainly the timing, amount, and quality of disclosure translations.
One respondent working in research at a U.K asset management company wrote, “Lots of the companies disclose much less information in the English disclosure, and even if so, the disclosure timing is 2-3 weeks later compared to the Japanese disclosure. This disclosure timing difference creates huge investment opportunity cost for us.”
“Disclosures have greatly improved overall, but there is still room for more improvement. Many small and mid-size companies, especially smaller ones do not have equally detailed English investor relations information, such as investor presentations.” -US asset management company
“Often times when the disclosure in Japanese is much better than English” -Asset management company in continental Europe
One quote from a U.S. asset management company summarizes the general trend.
“I believe it’s much harder to evaluate the risks of an investment in Japan compared to elsewhere in the world.”
The Unfortunate Result…
The 2023 TSE survey indicated that 41% of respondents valued companies with inadequate English disclosure at a discount, 35 % excluded such companies entirely from their investment universe, and 28% reported reducing the weights of these companies in their portfolios.
Figure 1
Q.What kind of consequences have you experienced due to inadequacy of English disclosure?
These findings reveal the direct impact of poor English disclosures on investor behavior and, by extension, the valuation of Japanese stocks.
What should you focus on in April?
It’s one thing to understand these issues; knowing where to begin is another challenge entirely. The TSE regulations in April 2025 require Prime Market-listed companies to disclose the following information.
Financial Results: This includes annual, semi-annual, and quarterly earnings reports. The simultaneous disclosure ensures that all investors have equal access to a company’s financial performance data.
Timely Disclosure Information: Material events that could influence investment decisions, including:
Earnings Forecast Revisions: Updates to projected financial performance.
Mergers and Acquisitions: Announcements of significant corporate restructuring or business combinations.
Changes in Executive Leadership: Notifications regarding alterations in key management positions.
Note that the TSE regulations going into effect will permit companies to provide summaries or excerpts of the Japanese disclosures in English, provided these disclosures cover the essential information necessary for investor decision-making. (JPX News Release)
For companies struggling with English language disclosures, this is a great first step. But the question remains… is this enough?
As mentioned earlier, investors look for full translation. A significant number of open-ended responses from the aforementioned survey indicate that many investors are dissatisfied with only being provided summaries and shortened disclosures. One respondent mentioned “We see some more companies filing various reports in English, but we are dissatisfied with companies still only publishing short versions of the Tanshin report in English, for example.”
Additionally, Respondents to the TSE survey indicated that, in addition to earnings reports, they look to base investment decisions on IR presentations (87%) and annual securities reports (85%). See Figure 2 for a more detailed list of investors’ priority.
Figure 2
Q. Please select one of the following items for each document to determine whether disclosure in English by listed Japanese companies is necessary when investing in those companies (a), and the timing at which they are needed relative to the Japanese release (b).
Understanding which documents overseas investors look for can make of break a company’s efforts to expand overseas.
To Conclude
The upcoming changes are not just a regulatory adjustment but also a critical opportunity for Japanese companies to rebuild investor trust. Prioritizing high-quality, timely English disclosures will allow companies to enhance their global reputation, attract institutional investors, and improve stock valuations.
While the shift may present initial challenges, taking proactive measures to adapt will help you position your company as a leader in transparency and global engagement. In an increasingly interconnected world, the ability to tell a company’s story effectively is not just a competitive advantage; it is an expectation.
>>Tune in to our February edition to learn more on what investors say about the quality of translated disclosures.
One World Link株式会社（OWL）は、企業コミュニケーションのための正確かつ効果的な英語の提供を専門としています。14年以上に渡るインベスターリレーションおよびコーポレートコミュニケーションの経験を活かし、OWLは日本企業がグローバルな投資家とより強固な関係を築くためのサポートをしています。
What words do you capitalize in titles? Are you consistent in writing dates ranges and numbers? Do you use PhD or Ph.D.? On-site or onsite?
These small but significant questions can be easily solved by using a style guide. In English writing, few professionals pick up their pen—or keyboard—without first choosing a style guide. Why? Because style guides are the backbone of consistent, polished communication.
For corporations, the stakes are even higher. Inconsistent communication can confuse stakeholders, tarnish your brand, and undermine your credibility. Without a style guide, many Japanese writers or editors may rely on outdated rules they vaguely remember from school—rules that may no longer apply in professional writing. This can lead to inconsistencies, inefficiencies, and miscommunication.
When it comes to translations, ensuring your service provider understands and follows your company’s style guide is just as critical. A well-implemented style guide ensures that every piece of communication—whether internal or external—reflects your brand’s standards and professionalism.
Stop guessing and elevate your communication. Choose the right style guide today!
What Are Style Guides?
Style guides are sets of rules and recommendations that standardize writing and formatting across documents. They ensure consistency and professionalism by stipulating rules on grammar, punctuation, tone, format, and citation styles. Different industries rely on specific style guides to meet their unique communication needs.
For example, journalists use the AP Style for concise reporting, while academics may rely on the Chicago Manual of Style or APA guidelines for detailed citations and formatting. Style guides allow writers to create clear and uniform content that resonates with their target audience.
Here’s a look at the top five most common English style guides and what makes each one unique.
Field: Social sciences, psychology, education, and healthcare.
Purpose: Standardizes citations and formatting for research-heavy disciplines.
Key Features:
Author-date citation style (e.g., Smith, 2020).
Rules for headings, abstracts, and tables/figures.
Focuses on precision and scientific clarity.
Quick Comparison
• AP: Fast and clear, used for news. • CMS: Detailed and professional, used for books and essays. • MLA: Focused on citations, used in humanities. • APA: Data-heavy and research-focused, used in sciences.
Title Case in Different Style Guides
Style Guide
What to Capitalize
Exceptions
Example Sentence
AP Style
– First and last words – Major words – all words of four letters or more – “to” in infinitives – Second part of hyphenated major words
– Do not capitalize articles (a, an, the, etc.), conjunctions (and, but, or, etc.), or prepositions shorter than four letters (in, on, by, etc.), unless they are the first or last word.
Annual Report Highlights Growth Over Key Markets
Chicago Manual
– First and last words. – Major words – Some conjunctions – Prepositions with five or more letters
– Do not capitalize articles, conjunctions, or prepositions shorter than five letters, unless they are the first or last word.
Annual Report Highlights Growth over Key Markets
MLA Style
– First and last words – Major words – Subordinating conjunctions
– Do not capitalize articles, coordinating conjunctions, or prepositions (regardless of length), unless they are the first or last word.
Annual Report Highlights Growth over Key Markets
APA Style
– First and last words – Major words – all words of four letters or more – Second part of hyphenated major words
– Same as AP Style
Annual Report Highlights Growth Over Key Markets
*Major words include nouns, pronouns, verbs, adjectives, adverbs
AP – We invited three professors, two Ph.D. students and one research assistant to the seminar. Chicago Manual / MLA – We invited three professors, two PhD students, and one research assistant to the seminar. APA – We invited three professors, two Ph.D. students, and one research assistant to the seminar.
So, What Style Guide Does OWL Recommend?
In professional writing, consistency and clarity are key. That’s why OWL chooses the AP Style. AP Style is a great choice for IR communication because it keeps things clear, concise, and professional, which is exactly what investors and stakeholders need. The straightforward nature of this style makes complex financial data easier to digest, which is key when presenting quarterly earnings or big updates. AP Style also focuses on accessibility, ensuring your message is accessible to a broad audience, from seasoned analysts to everyday shareholders.
Choosing the Right Style Guide
Ready to sharpen your writing? Consider your industry, your audience, and the type of content you produce. Whether crafting a news article, research paper, or technical manual, using the right style guide ensures your content is professional, consistent, and tailored to your audience. Evaluate the flexibility and relevance of a guide to your organization’s goals, and ensure everyone on your team is familiar with its rules to maintain a unified approach.
The Owl Purdue website (https://owl.purdue.edu/owl/index.html) is an excellent resource for quick tips and detailed explanations on APA, MLA, CMOS, and more. See the official style guidebooks for the most accurate and detailed information.
Be careful when relying on autocorrect or AI tools like Grammarly, as these tools may suggest edits that conflict with your chosen style guide. These tools are helpful for general writing but may not align with the specific rules your company follows. To maintain consistency and professionalism, it’s essential to understand and adhere to the guidelines of your selected style guide.
This blog is not an exhaustive comparison of all style guides. Instead, it provides a general introduction to style guides and their purpose. While many guides share similarities, each has its own distinct and detailed set of rules. For more specifics, refer to the guidebooks themselves.
今回のブログではHarvard Business Review（以下、HBR）のある記事を紹介したいと思います。 「エグゼクティブの英語力は投資家の判断を左右する」というもので、非常に興味深い研究結果が報告されています。 以下、HBRの記事を日本語に要約しましたので、シェアさせていただきたいと思います。
