In today’s briefing:
- Japanese Stocks’ Low Trading Liquidity Has Adversely Affected Management’s Shift To Value Creation
Japanese Stocks’ Low Trading Liquidity Has Adversely Affected Management’s Shift To Value Creation
- A more direct way to resolve management challenges is to address the structural issue of trading liquidity being significantly lower than market capitalization and thereby attract attention of global investors.
- Companies should strive to resolve cross-shareholdings promptly. Prompt elimination of parent-subsidiary listings—in the broad sense—will lead to improved profitability for both the parent company and its affiliates.
- This structural issue is the reason why companies that wish to continue operating based on traditional values are still able to hold a majority of voting rights.
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