Daily BriefsESG

Daily Brief ESG: Parent-Subsidiary Listing Issues Lead to Reasons Why ROE Is Not Increasing and more

In today’s briefing:

  • Parent-Subsidiary Listing Issues Lead to Reasons Why ROE Is Not Increasing


Parent-Subsidiary Listing Issues Lead to Reasons Why ROE Is Not Increasing

By Aki Matsumoto

  • The most significant reason for decreasing parent-subsidiary listings is the presence of overseas investors who have long pointed out the problems with this issue. This TSE’s request will support them.
  • The issue of parent-subsidiary listing is whether the listed parent should incorporate the profitability of equity-method affiliate/listed subsidiary to enhance its profitability, or effectively use its assets by divesting them.
  • If extending to equity-method affiliates, there are many companies that haven’t made progress in reviewing their business portfolios, and this is where the fundamental issue of ROE not increasing lies.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars