In today’s briefing:
- Will Parent Company Valuations Remain Undervalued Until the Parent-Subsidiary Listing Is Dissolved?
Will Parent Company Valuations Remain Undervalued Until the Parent-Subsidiary Listing Is Dissolved?
- It’s true that the difference in profit margins between a listed subsidiary that focuses on specific business and a parent company that has different businesses is the difference in valuations.
- It will be difficult for a parent company to reverse the valuations of its subsidiaries until the parent company dissolves the parent-subsidiary listing and increases its own profit margins.
- With respect to corporate governance practices, companies with no major shareholders are included with relatively higher corporate governance scores, but this isn’t as significant difference as it tends to be.
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