In today’s briefing:
- More Companies Are Introducing Shareholder Benefits Without Addressing Concerns About Fairness
More Companies Are Introducing Shareholder Benefits Without Addressing Concerns About Fairness
- As cross-shareholding structure begins to break down and concerns grow over the influence of activist investors, an increasing number of companies are introducing shareholder benefits to win over individual shareholders.
- Some believe that having more individual investors not only helps limit declines—particularly during market downturns—but also lowers the cost of capital. However, it’s unclear whether shareholder benefits are effective.
- Retail investors aren’t the only diverse investors. Institutional investors also engage in a variety of investment strategies, and repurchasing treasury stock is an effective way to reduce stock price volatility.

