Fuji Media Holdings Inc. witnessed a surge in its stock prices following the announcement of a management overhaul and plans to enhance capital allocation. Shares of the Japanese broadcaster rose by up to 7.4% in Tokyo, marking the largest intraday gain in over a month. The company disclosed that Hisashi Hieda, the former chairman and executive management adviser, who has been with the company for 87 years, is stepping down from the board. Additionally, Fuji Media will assess its asset portfolio, including strategic equity, and work on improving capital allocation. The company holds significant real estate assets and cross-shareholdings. While the stock market responded positively, the reaction in the debt market was more subdued, with the spread in Fuji Media’s corporate bonds maturing in 2028 remaining relatively stable. This stability contrasts with the higher levels seen following a sexual harassment scandal in December. An independent investigation into the scandal is expected to report its findings by the end of the month. Despite the market's positive reception to the company's proactive steps, credit investors remain cautious about governance issues, reflecting ongoing concerns about credit risk. Pressure has mounted on Fuji Media to revamp management practices, particularly after losing sponsors due to mishandling the harassment case. Calls for management changes have come from various quarters, including Rising Sun Management and Rheos Capital Works. In response, Fuji Media announced a reduction in the board's size and a shift to predominantly outside directors.