One in three companies listed on the first section of the Tokyo Stock Exchange reported record profits in the business year that ended March 31, thanks to strong demand from China and higher raw materials prices.
Surprisingly, many rewarded their shareholders by increasing dividends or buying back their own stock. Japanese companies usually shun their shareholders and save profits for investment or retain them as internal reserves.
The drastic change is a response to increasing activism by discontented shareholders and a growing awareness among companies of their vulnerability to hostile takeovers.