Japan’s Leaky Markets Are Governance Washout

[Japan’s] markets were supposed to have been plugged after insider-trading scandals in 2010. The regulators promised a crackdown after unusual share plunges and heavy trading volume ahead of follow-on offerings of shares from already listed companies raised suspicions that inside information was seeping out.

But there is ample evidence that the leaky trend continues, with stock prices falling ahead of official announcements about new equity offerings that dilute existing shareholders.

via Japan’s Leaky Markets Are Governance Washout – WSJ.com