Why the impact of reducing cross-shareholdings in Japan 'should not be underestimated'

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Chris Smith of Polar Capital
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Chris Smith of Polar Capital

How important are shareholders to a business? Normally, very important.

This concept has taken a while to spread to Japan. In Japan, investors have begrudgingly accepted domestic management teams place far less focus on shareholders than they should.  Ruffer: The 'intensely interesting' opportunity in Japan The largest culprit is the cross-shareholding culture, where it is common for companies to invest in the equity of their customers and suppliers. The aggregate effect of this means a large proportion of the companies' share base can be held by related companies that have different requirements to normal shareholders.  These cross-shareholders typ...

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