Daily BriefsESG

Daily Brief ESG: The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action and more

In today’s briefing:

  • The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action


The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

By Aki Matsumoto

  • The essence of problem lies in the fact that even half of them believe that ROE doesn’t exceed cost of capital, yet managers haven’t taken measures to address this problem.
  • In reality, management reform is still a long way off, as constructive proposals from shareholders are often not accepted until the % of foreign shareholders rises to the 30% level.
  • TSE has made it possible to compare the superiority of management skills with share price. Attention will be focused on how managers will answer questions about share prices at AGMs.

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