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.
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