In today’s briefing:
- Will Rising Capital Cost Lead to Fundamental Solution Beyond Simply Increasing Shareholder Returns?
Will Rising Capital Cost Lead to Fundamental Solution Beyond Simply Increasing Shareholder Returns?
- In survey conducted by Life Insurance Association of Japan on “Is ROE Exceeding the Cost of Capital?,” the discrepancy in perceptions between companies and investors has drawn attention every year.
- With the rise in the cost of capital, there is a risk that ROE could fall below the break-even point—even based on a company’s own calculated “cost of capital.”
- The key to achieving “ROE significantly exceeds the cost of capital” is to implement fundamental measures to boost earnings; however, many companies will focus solely on enhancing shareholder returns.

