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Japan's Governance: How Far Corporate Governance Has Progressed in 2021? (4) - Change in ROA and ROE

ESG
180 Views, 12 Jan 2022 19:44
EXECUTIVE SUMMARY
  • I suspect that there are other incentives for companies to improve their corporate governance practices (especially board practices) than improved performance (improved ROA and ROE).
  • Companies that improved ROA used cash raised on B/S from increased profits to return profits to shareholders through increased dividends, but still lacked conviction in using cash for future growth.
  • It is inferred that companies with higher ROE tend to use cash to buy back their own shares.
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METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increa... 

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