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IR Top Page > Management Objectives > Corporate Governance

Corporate Governance

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Shareholders and investors have made the practical and effective functioning of internal control into a key issue amidst an epidemic of corporate misconduct in Japan and overseas. In this section, Capcom will explain the corporate governance structure and systems that it has initiated so far based on the key concepts of "effectiveness and visibility" in terms of the results of third party assessment.

(Assessment areas are highlighted in yellow.)

PDF Corporate Governance Report (PDF: 844KB/66pages) ( September 19, 2018 )

PDF Capcom's basic policy for Japan's Corporate Governance Code  (PDF: 612KB/49 pages) ( September 19, 2018 )

How the Company has Addressed All 78 Principles of the Corporate Governance Code

(as of October 19, 2018)

Third-Party Assessment

Promoting More "Visible" Governance

An analysis of an assessment performed by a third-party organization into the validity and effectiveness of Capcom's corporate governance shows that the company ranked 184th among 3,548 listed companies in Japan in the "NEEDS-Cges" assessment developed by Nikkei Digital Media, Inc.

NEEDS-Cges has an established reputation as a system that quantitatively assesses corporate governance using scores on a scale of 1 to 10 for eight categories, including capital efficiency, information disclosure, and external regulations, among others, based on some 150 indicators calculated from data of publicly released company documents, such as financial reports.

As of the end of June 2018, Capcom's total score was 7.20 points, placing us in the top 5.2% of Japan's listed companies, exceeding the 4.91-point average for all listed companies and the 7.02-point average for the industry. We also received the maximum score of 10 for "equity market evaluation" and "information disclosure."

The main evaluation factors are given in the table below, but areas highlighted in yellow indicate measures that received particular notice. Going forward, we will continue making improvements based on consideration of external data to earn an even stronger assessment, and further promote the external visibility of our governance.

Third-Party Assessment Results of Capcom's Corporate Governance

Comparison of the Industry Average and the Average for All Listed Companies

Comparison of the Industry Average and the Average for All Listed Companies

Details of Capcom's
Corporate Governance Assessment
Categories Fiscal 2017 Ratings Fiscal 2018 Ratings  
Total Score 7.28 7.20
Capital efficiency 5 9
Equity market's assessment 7 10
External regulations 8 9
Board of Directors 8 6
Officer remuneration 8 8
Information disclosure 10 10
Capital policies 8 5
Effectiveness 4 4
Rank 174 184

184/3,548 Top 5.2%

Details of Categories
Categories Score Areas that Received Particular Notice
Capital efficiency 9 Statistics related to free cash flow
Equity market's assessment 10 Statistics related to Tobin's Q Ratio; equity returns
External regulations 9 Presence (or absence) of takeover defense measures
Information disclosure 10 Timing of Shareholders' Meetings (avoiding congested periods), degree of website detail, early timing of Shareholders' Meeting invitations, utilization of electronic voting, presence or absence of English disclosure materials

Source: NEEDS-Cges from Nikkei Inc.

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