In today’s briefing:
- Will Companies Change with Cash Allocation Disclosures that Don’t Allow Copy-And-Paste Solutions?
Will Companies Change with Cash Allocation Disclosures that Don’t Allow Copy-And-Paste Solutions?
- Since sustainable growth in corporate value could not be achieved, the revised Corporate Governance Code now focuses on cash allocation practices that are strongly linked to corporate value creation.
- To achieve the goal of maximizing shareholder interest, strategic planning and investment are essential, and it’s natural to consider the remaining free cash flow as belonging to the owners, shareholders.
- Pointing out better disclosure methods won’t lead to cash allocation that satisfies investors unless they understand underlying contractual relationship between shareholders and management and the mindset behind executing management decisions.
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