Daily BriefsESG

Daily Brief ESG: Evaluate Not Only Board Practices and more

In today’s briefing:

  • Evaluate Not Only Board Practices, but Also Key Actions to See if They Are Leading to Value Creation

Evaluate Not Only Board Practices, but Also Key Actions to See if They Are Leading to Value Creation

By Aki Matsumoto

  • Many companies have low valuations due to the fact that not few managers are concerned about maintaining public listing with the idea of prioritizing it over growth in shareholder interests.
  • Many companies only minimally respond to formally aligning board practices with the criteria of the Corporate Governance Code, and very few are creating value through advancing their corporate governance initiatives.
  • TSE data shows that OP Margin is neutral and Asset Turnover and Financial Leverage are both negative for ROE, so immediate share repurchases are the effective way in raising ROE.

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