EquitiesShareholder activism boosts Japanese stocks, but only for 18 months
Investments drive higher returns at the cost of limited ROE growth
Many activist investors continue to prioritize shareholder returns, due to the significant internal reserves held by Japanese companies. © Getty Images
MIO TOMITA and TOKIO MURAKAMI, Nikkei staff writers
December 8, 2024 20:00 JST
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.