In today’s briefing:
- The Solution to Better Corporate Governance Is to Reduce the # of Companies with Large Shareholders
The Solution to Better Corporate Governance Is to Reduce the # of Companies with Large Shareholders
- Since “profitability of capital” like ROE or ROIC cannot create value in mid-to-long-term without improvement, the fact that ROE has stalled is a cause for concern for future stock prices.
- The slow growth in Net Profit Margin and the sluggish improvement in Asset Turnover and Financial Leverage indicate that it is still holding too much cash, cross-held shares, etc.
- Nearly half of all listed companies are companies with major shareholders of 20% or more, which is an obstacle to improving corporate governance.
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