More and more leading Japanese companies are announcing their intention to reduce their cross-shareholdings in order to increase capital efficiency, free up funds for future investments or return the money to shareholders through dividends or share buybacks. Most recently Toyota Motor, now the large insurance companies. This makes it easier for small and mid-sized companies to also start this process.
Another important step towards better governance and capital efficiency: Plans by insurers to divest over $40 billion in cross-shareholdings will foster governance reform in Japan, analysts say, although affected stocks may come under selling pressure. Insurer divestment plan raises hopes for Japan corporate reform #markets #investing #japan #assetallocation #money #valueinvesting #alphageneration #institutionalinvestors
