Seven of the 14 listed companies that have gone bust since April did so without previously disclosing information about their business risks, such as excessive debts and huge operating losses, according to a survey conducted by Kyodo News.
The seven firms include Ashikaga Financial Group Inc., the holding company of Ashikaga Bank, the insolvent regional lender that was put under government control Dec. 1.
They also include game software wholesaler Digicube Co., builder Morimoto Corp. and home appliance retailer Matsuyadenki Co.
Ashikaga Financial disclosed the information only after the government decided to nationalize Ashikaga Bank.
All the companies had long been rumored to be in serious financial trouble.
Their failure to disclose unfavorable information about their true business condition has already sparked anger among some shareholders.
It also violates a Financial Services Agency requirement that took effect in fiscal 2002 compelling them to include business risk information in their financial statements.
Most of the companies that went bankrupt after April are believed to have been facing financial problems before then, and they may have ignored the requirement to protect their share prices and their businesses.