Business & Finance
Japan Push for Corporate Growth Over Value Sets Off Skepticism
Key Points
Japan Push for Corporate Growth Over Value Sets Off Skepticism The Japanese government’s new push to encourage companies to use their cash for longer-term growth is raising concerns it will lead to unprofitable investments and erode corporate value. Guidance by Japan’s economy ministry last month urging firms to focus more on mid- to long-term growth, with the aim of boosting capital spending and wages, is at odds with the Tokyo Stock Exchange’s directive to improve how companies are run,...
Japan Push for Corporate Growth Over Value Sets Off Skepticism
The Japanese government’s new push to encourage companies to use their cash for longer-term growth is raising concerns it will lead to unprofitable investments and erode corporate value.
Guidance by Japan’s economy ministry last month urging firms to focus more on mid- to long-term growth, with the aim of boosting capital spending and wages, is at odds with the Tokyo Stock Exchange’s directive to improve how companies are run, according to analysts.