Shareholder activism boosts Japanese stocks, but only for 18 months

Investments drive higher returns at the cost of limited ROE growth

MIO TOMITA and TOKIO MURAKAMI, Nikkei staff writers

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.

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