In today’s briefing:
- Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings
Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings
- Overseas investors tend to invest in companies with large market capitalization and high profitability, resulting in higher stock price valuations. They also tend to avoid investing in listed subsidiaries.
- Since companies with over 20% foreign ownership show superior board practices, it’s reasonable to assume that board practices improve as foreign ownership increases and the influence of overseas investors increases.
- Companies with more than 30% foreign ownership have many items that generally show excellent values in Key Actions. However, all companies still face challenges in cash allocation.
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