91AV原创 financial regulator is urging the country’s listed companies to spend more of their cash piles on long-term business investment instead of rewarding shareholders with buybacks and higher dividends.
In addition to cash, executives should consider utilizing cross-shareholdings and real estate property for growth, Tatsufumi Shibata, a senior official at the Financial Services Agency, said in an interview. Japanese companies tend to prioritize payouts to shareholders regardless of where they stand in the growth curve, he said.
“I don’t think investors demand that from companies that are in a rapid growth phase,” he said in an interview.
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