Daily BriefsESG

Daily Brief ESG: The Reason for No Improvement in ROE Was that the past 3 Years Lacked a Shareholder Perspective and more

In today’s briefing:

  • The Reason for No Improvement in ROE Was that the past 3 Years Lacked a Shareholder Perspective


The Reason for No Improvement in ROE Was that the past 3 Years Lacked a Shareholder Perspective

By Aki Matsumoto

  • Given that the simple average ROE is 7.9%, more companies have profitability below their cost of capital. It’s overly optimistic to assume that these companies could immediately improve their profitability.
  • Regardless of whether the company discloses information in response to requests, it should be held accountable for whether it is implementing measures to create value.
  • Without a shareholder perspective in corporate management, the disclosed measures will not serve the interests of shareholders but will merely be intended to comply with the Tokyo Stock Exchange’s requirements.

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