In today’s briefing:
- Simply Returning Profits to Shareholders Will Increase Gap in Valuations Among Companies
Simply Returning Profits to Shareholders Will Increase Gap in Valuations Among Companies
- It can be said that companies that do not specify cash allocation and only execute shareholder return, thus encouraging shareholders to find and invest in reinvestment targets on their own.
- Since the stock valuations of companies as a whole haven’t increased, investment capital has gone to a few companies with high profitability, raising gap between profitability and valuations among companies.
- If the information asymmetry between management and investors could be bridged, even changes in the capital structure could have an impact on stock prices.
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