Daily BriefsESG

Daily Brief ESG: If Profits Cannot Grow and more

In today’s briefing:

  • If Profits Cannot Grow, Tokyo Market Will Be Full of PE and Activist Investors


If Profits Cannot Grow, Tokyo Market Will Be Full of PE and Activist Investors

By Aki Matsumoto

  • There do not seem to be many companies that have executed large one-time dividends that have subsequently grown in corporate value.
  • Now that the exit from deflationary economy is seen and profit margins have room to grow, the environment is conducive to investing in growth, and companies have opportunities to change.
  • Limited profit growth is making it easier for market risk-taking investors to leave. Unless companies can grow profitably, Tokyo market will be full of private equity funds and activist investors.

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