Aberdeen Asset Management and David Smith

corporate governance: The scandal is a major setback for the government of Prime Minister Shinzo Abe, who has made improving corporate governance a central theme in his bid to reinvigorate Japan economy and entice more foreign capital, according to Euro News. This is a negative headline in what been 18 months of positive momentum in Japan, said Singapore-based David Smith, head of corporate governance at Aberdeen Asset Management, which owns Japan stocks. Toshiba chief executive Hisao Tanaka and a string of other senior officials resigned on Tuesday after an independent inquiry found he had been aware the company had inflated its profits by $1.2 billion over several years. An Aberdeen affiliate had a very small equity holding in Toshiba as of end-May, Reuters data shows. The government may want to act tough, said Smith, who helps manage about $115 billion in Asia. This is a black mark for corporate Japan in the face of positive news and strong markets. (news.financializer.com). As reported in the news.