S&P Report: Cross-Held Shares In Japan Near New Phase Of Unwinding

Abstract: TOKYO (Standard&Poor’s) May 19, 2015–A growing focus on return on equity among major Japanese companies may drive them to further unwind cross-shareholdings in major lenders and other corporations, Standard&Poor’s Ratings Services said in a Japanese-language report published today. Also, the Tokyo Stock Exchange’s planned introduction of a corporate governance code in June 2015 is likely to further encourage companies to unwind cross-ownership. Moves to unwind cross-shareholdings spread among mostly financial institutions after the global financial crisis broke out in 2008 as the firms sought to curb risk. With corporations now rethinking their policies on cross-ownership, the move to unwind cross-shareholdings is about to enter a new phase. Cross-held shares have long played an important role in

Brief Excerpt:
…TOKYO (Standard & Poor’s) May 19, 2015–A growing focus on return on equity among major Japanese companies may drive them to further unwind cross-shareholdings in major lenders and other corporations, Standard & Poor’s Ratings Services said in a Japanese-language report published today. Also, the Tokyo Stock Exchange’s planned introduction of a corporate governance code in June 2015 is likely to further encourage companies to unwind cross-ownership. Moves to unwind cross-shareholdings spread among mostly financial institutions after the global financial crisis broke out in 2008 as the firms sought to curb risk. With corporations now rethinking their policies on cross-ownership, the move to unwind cross-shareholdings is about to enter a new phase. Cross-held shares have long played an important role in Japanese business practices as a means for corporations to maintain solid relationships with their lenders, which, in turn, smooths implementation of their longer-term business strategies….

Buy the report:
http://bit.ly/1SFsEle

The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.