Key facts
- Shareholder activism globally increased by 20% in the first half of 2026.
- Japan recorded a record 139 shareholder proposals in 2026, making it the second most active region.
- Reforms to corporate governance codes and stock exchange rules have fueled this rise.
- Common demands include increased dividends, share buybacks, and governance changes.
- Global activism reached an all-time high in 2025 with 255 campaigns, driven by M&A and market volatility.
- US activism accounted for 55% of global activity in 2025, with a 23% year-over-year increase.
Shareholder activism reached record highs globally in the first half of 2026, with Japan experiencing a particularly sharp increase in investor proposals. According to data from Mitsubishi UFJ Trust Bank, Japanese companies faced 139 activist shareholder proposals in 2026, the highest level on record and an increase from previous years. This surge reflects a broader global trend, with 2025 seeing 255 activist campaigns worldwide, surpassing the previous record set in 2018. The United States led global activity in 2025, accounting for 55% of campaigns with a 23% year-over-year increase.
Historically a challenging market for activists due to cross-shareholding arrangements and insulated boards, Japan's corporate landscape has been reshaped by reforms to its Corporate Governance and Stewardship Codes, alongside efforts by the Tokyo Stock Exchange to improve capital efficiency. These changes have attracted both domestic and international investors seeking to unlock value in underperforming companies. Common demands from activists in Japan include higher dividends, increased share buyback programs, asset sales, spin-offs, and governance reforms such as appointing independent directors.
Prominent activist investors like Hong Kong-based Oasis Management have successfully campaigned for leadership changes at companies such as Taiyo Holdings and are currently targeting Kyocera, Kadokawa, Tokyo Steel, and SMS. Elliott Investment Management recently achieved a victory opposing terms in Toyota Industries' buyout of TICO, while Dalton Investments and AVI have pushed for governance reforms at Yakult and Wacom, respectively. These campaigns signify a growing investor willingness to challenge Japanese management on capital allocation and governance.
In response to this increased pressure, Japanese companies have already begun to act, with share buybacks reaching a record JPY18 trillion ($112.3 billion) in 2024 and many firms increasing dividend payouts. However, activism in Japan generally remains less confrontational than in Western markets, with many engagements occurring privately. The trend is seen as a positive development that could improve corporate efficiency and unlock value in a market that has historically traded at lower valuations.