TOKYO -- Activist investors are expanding their presence in Japan Inc. as they aim for higher returns on their investments. However, even though their involvement often leads to an initial increase in the stock prices of target companies, the effects tend to be short-lived, a Nikkei analysis shows.
After receiving investments from activist funds, the 521 companies that were analyzed outperformed the Topix index, the Tokyo Stock Exchange's broad-based benchmark, by up to 4 percentage points on a median basis in the first year. However, their performance began to lag after 18 months and trailed the index by 6 points three years later.
