Functions of the Japanese Capital Market

The capital market, the stock market in particular, not only gives investors the opportunity to distribute the burden of risk, it is also expected to add the function of control to business management. In other words, the evaluation of investors that is unveiled in the capital market regarding the various forms of business management should have a very heavy influence on management decision making. The threat of company acquisition especially may be thought to play the part of deterring any deviation from a management policy of managing business with a serious consideration for the profit of the stockholders.