In today’s briefing:
- Continuing Parent-Subsidiary Listings Is Losing Value that Could Be Reliably Obtained
Continuing Parent-Subsidiary Listings Is Losing Value that Could Be Reliably Obtained
- Listed subsidiaries focusing on core businesses have higher capital profitability and stock valuations than parent companies, while parent companies with diversified businesses have lower than listed subsidiaries in the both.
- By converting a listed subsidiary with high capital profitability into a wholly owned subsidiary, or by selling a listed subsidiary with low capital profitability, it could increase profitability of parent.
- Even though this was expected, parent-subsidiary listings continue to this day (recently, more subsidiaries are listing on Standard Market), and the value that can be reliably obtained is being lost.
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