Japan's Shame Index Tries to Spur Profits

A stock market measure showcases efficient companies
Women employees of the Tokyo Stock Exchange and its member securities companies at the opening ceremony of the JPX-Nikkei Index 400 in Tokyo on Jan. 6 Photograph by Shizuo Kambayashi/AP Photo

When the Japanese government came up with the idea of creating a stock index to incite better corporate performance and boost the economy, the job of devising the measure fell to Daisuke Tanaka, a lifelong employee of Japan Exchange Group. Launched in January, the JPX-Nikkei Index 400 is changing company behavior even as detractors say it will cause investors to buy overpriced stocks. “I feel glad we’ve made this measure,” says Tanaka. “I’ve no regrets about how we set it up.”

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