Daily BriefsESG

Daily Brief ESG: In the Dissolution of the Parent-Subsidiary Listing and more

In today’s briefing:

  • In the Dissolution of the Parent-Subsidiary Listing, the Second Step Is Key for the Parent Company


In the Dissolution of the Parent-Subsidiary Listing, the Second Step Is Key for the Parent Company

By Aki Matsumoto

  • The measure to implement 100% inclusion or separation of subsidiary profits from parent company profits is only the first step, and this alone won’t reflect positively on the stock price.
  • The key is the second phase of measures to strengthen the parent company’s overall ability to generate cash flow by investing in highly profitable businesses after restructuring its business portfolio.
  • Hitachi is one of the few cases where it quickly implemented the second phase and reflected growth in corporate value in its stock price through realization of cash flow expansion.

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