Daily BriefsJapan

Daily Brief Japan: Shinko Electric Industries, TSE Tokyo Price Index TOPIX and more

In today’s briefing:

  • Merger Arb Mondays (09 Sep) – Shinko, Fuji Soft, Pasco, GA Pack, CPMC, Latin Res, Capitol, PSC, Rex
  • 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.

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