Japanese corporates are notorious for hoarding cash, but there’s a revolutionary shift underway, with shareholder returns set to reach their highest level ever this fiscal year, according to Goldman Sachs.
“Faced with growing pressure to improve capital efficiency, Japanese companies have become increasingly conscious of corporate governance and the need to deliver higher returns to shareholders as their earnings have recovered,” Goldman Sachs wrote in a note published over the weekend.
Annual dividends are forecast to reach a record high of 9 trillion yen ($76 billion) in the fiscal year ending March 31, up from 8 trillion yen last year. Japanese companies have announced share buybacks totaling 2.5 trillion yen between April and December 2014, up 116 percent on year.
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