Daily BriefsESG

Daily Brief ESG: Risk Taking by Managers Is Key and more

In today’s briefing:

  • Risk Taking by Managers Is Key, Weather Changing the Game or Creating a New Business

Risk Taking by Managers Is Key, Weather Changing the Game or Creating a New Business

By Aki Matsumoto

  • Since listed companies have abundant cash reserves even if interest rates rise, they will use their cash to pay down debt but they are unlikely to use it for investments.
  • Cash is piling up on balance-sheet resulting from the inability to invest in growth and get out of the game of sharing the pie of the existing stable domestic market.
  • In order to raise profit margins significantly, a manager may find growth and invest in non-existing businesses or introduce game-changing products that disrupt the stability of the market.

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