By Ryohei Yanagi
Published by Springer
This is the first book to furnish a root cause of the low valuation of Japanese listed companies by using, as qualitative evidence, unique global investor surveys, which are rarely available for Japanese companies. Also contained in this book as quantitative evidence is empirical research with regression analysis implying a positive correlation between corporate governance and value creation in Japan.
The author explains the rationale underlying the suggestion of the Ito Review on return on equity (ROE) 8% guidance, an almost 50% discounted valuation of the cash held by Japanese companies, corporate value and ROE, equity spread as a key performance indicator for value creation, an optimal dividend policy based on optimal capital structure, risk-adjusted hurdle rates for value-creative investment criteria, and the synchronization of environmental, social, and governance with equity spread.
Illustrated with relevant statistics, evidence of shareholders’ voices, case studies, and empirical research, the book is highly recommended for readers who seek qualitative and quantitative evidence of Japan’s problems and potential prescriptions in connection with value creation.
About the contributors
Ryohei Yanagi is Visiting Professor at Toyo University and Waseda University Graduate School of Accountancy, teaching and researching Corporate Governance, Financial Strategy and Investor Relations. In addition, throughout his career with UBS as Executive Director (specialising in corporate governance in Japan) and at Eisai as CFO (current full-time occupation), for the last fifteen years he has conducted around 200 meetings per year with global investors, totalling around 3000 meetings. He holds a Ph.D. in economics from Kyoto University, Japan and also obtained an MBA with distinction from Thunderbird Graduate School of Global Management, Arizona, USA. In connection with corporate value enhancement activities in Japan, he has been one of the drafting members of METI’s “Ito Review” (Japanese version of Kay Review), and was instrumental in establishing the “ROE 8% guideline”. He has also gathered evidence and advised the TSE on corporate disclosure.