Key Facts
• SoftBank Group to release its first sponsored research report soon.
• Sponsored research involves companies funding investor-targeted reports about themselves.
• Over 600 of Japan’s 4,000 listed companies use sponsored research (2023 data).
• Reports are free, unlike traditional sell-side analyst reports, which are restricted.
• Sponsored reports include business models, market trends, and company strengths/weaknesses.
• Nomura Holdings and Shared Research are key players in this field.
• SoftBank’s adoption driven by European regulations limiting sell-side report access.
• Sponsored research aims to attract long-term investors and improve corporate communication.
• Concerns exist over potential bias due to company-funded nature of reports.
• Shared Research mitigates bias by providing comprehensive, detailed, and unbiased information.
Summary
SoftBank Group is set to release its first sponsored research report, reflecting a growing trend among Japanese companies. Sponsored research, funded by companies, provides free, detailed reports for investors, contrasting with restricted sell-side analyst reports. Over 600 Japanese firms, including SoftBank, have adopted this approach to enhance investor communication and attract long-term stakeholders. The trend is partly driven by European regulations limiting access to traditional reports. While concerns about bias exist, firms like Shared Research address these by offering comprehensive and neutral information. Sponsored research is increasingly seen as a strategic tool for corporate transparency and investor engagement.
