Daily BriefsESG

Daily Brief ESG: Why Is Capital Profitability Slow to Improve and more

In today’s briefing:

  • Why Is Capital Profitability Slow to Improve, Even Though More Board Members Have “Finance Skills”?


Why Is Capital Profitability Slow to Improve, Even Though More Board Members Have “Finance Skills”?

By Aki Matsumoto

  • While having more board members with “financial skills” is expected to contribute to increasing corporate value, many companies still struggle to improve their capital profitability.
  • Possible reasons for this include an inaccurate skills matrix, a lack of financial strategies aimed at increasing corporate value, and a board of directors—including outside directors—that is not functioning effectively.
  • To implement management practices aimed at increasing corporate value, all board members must understand corporate finance so that the board of directors can discuss strategies to achieve this goal.

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