Daily BriefsJapan

Daily Brief Japan: Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

  • Might Consider Creating Mechanism to Allocate Companies’ Cash in Cash Cow to Companies that Can Grow

Might Consider Creating Mechanism to Allocate Companies’ Cash in Cash Cow to Companies that Can Grow

By Aki Matsumoto

  • Share buybacks are likely to increase considerably in FY2023. One of the reasons for this is that the TSE has requested companies with stagnant stock prices to disclose improvement measures.
  • More important than the amount of share repurchase is how much ROE increased as a result. Whether shareholder returns were adequate for cash reserves and cash flow should be examined.
  • While Japanese companies today are in a cash cow situation as a whole, they are very cautious about investing aggressively.

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