Increasing pressure on Japan¡¯s technology firms to return more cash to shareholders may spur the next phase of corporate reforms that helped drive the nation¡¯s stock market to record highs.
Keyence management faced questioning from analysts at its recent results briefing on why it wasn¡¯t distributing more from its ?2.7 trillion ($18 billion) pile of assets. Earnings from the factory-automation company also failed to meet high expectations, and its shares dropped the next day by the most in four months.
Growth companies that had been getting a free pass amid the Tokyo Stock Exchange¡¯s yearslong campaign to improve valuations and capital efficiency are now facing closer scrutiny. Investors and analysts cite gaming giant Nintendo and Shin-Etsu Chemical, the world¡¯s biggest maker of chip wafers, among others with large financial hoards.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.