BEST ARTICLES FOR 2020 ANNOUNCED BY SAAJ

29 October 2020

The following are the best articles announced by the Securities Analysts Association of Japan (SAAJ) for 2020:

1. Network Structure in ESG Ratings Suggests New Corporate Strategies:
Evolving AI Technology to Quantify Qualitative Data
- Yukihiro Aiba / Takeshi Ito / Yohei Ibe
The authors developed a quantitative model to predict a company’s ESG ratings assigned by FTSE and MSCI, by systematically collecting corporate disclosure reports and processing them using AI technology. The model identifies quantitatively the areas that each company should strategically prioritize and the information it should disclose with regard to ESG. To read this article, click here.

2. Efficiency of Japanese Corporate Investment in Human Capital and Shareholder Value
- Yasushi Ishikawa / Kyoji Hasegawa
Japan struggles with the issues related to its aging and shrinking population and low labour productivity. By estimating the efficiency of human capital investments of Japanese companies, the authors showed that higher human capital efficiency would lead to higher share price performance, particularly for the stocks of companies with lower labour productivity.
To read this article, click here.