Nicholas Benes : 「Whither Governance in Japan? Part 2- How the Code Is Intended to Function」

Executive Summary To me – the guy who proposed the code –  the most important logic of Japan’s corporate governance code is: Japan needs committees even more than other countries, because there are so few outside directors to set the base for “committees”, Japanese companies must first appoint “multiple” independent directors Japan needs any and […]

Bloomberg: ”The Tokyo Whale Is Quietly Buying Up Huge Stakes in Japan Inc.”

“…. Still, the longer the BOJ’s buying persists, the bigger the risk that market prices will detach from fundamentals. Assuming Goldman Sachs’s prediction for more stimulus proves correct, the central bank could end up owning a quarter of Mitsumi Electric Co., a supplier to Apple Inc., and 21 percent of Fast Retailing by the end of 2017, estimates compiled by Bloomberg show.

WSJ (Benes) – ”Japan’s Pension Funds Could Help Curb Cash Hoarding”

”Almost three years after I first proposed in these pages that Japan adopt a governance code to raise productivity, the country now not only has a Corporate Governance Code but also a Stewardship Code for institutional investors. There has since been much discussion, and even exhortation by the government, about the urgent need to change the corporate mindset, engage with investors and increase companies’ return on equity. These are all major achievements. But when it comes to increasing corporate profitability through reinvesting in the real economy, there is still much progress to be made.

Japanese companies continue to sit on a mountain of excess cash. According to Japan’s Ministry of Finance, this mountain actually grew to $1.5 trillion in 2015 from $1.4 trillion in 2011, despite substantial increases in dividends and stock buybacks. During that same period, capital expenditure shrank by more than half……….”

FT: “Sharp Warns on Ability to Stay Afloat after $1.9bn Loss”

BDTI’s Representative Director Nicholas Benes is quoted in his article about Sharp in the Financial Times this morning. Excerpts:  

Sharp, a century old stalwart of corporate Japan, has unveiled an annual loss of $1.9bn and warned of “material uncertainty” about its ability to stay in business, less than three years after facing a similar crisis of survival.