Shame, Prestige Drive Returns at Some of Japan's Biggest Firms
- Race to join index has pushed up ROE, Harvard study finds
- Companies improved margins, efficiency or shareholder payouts
Morning commuters make their way to work in Tokyo.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
A desire for prestige and the wish to avoid shame among managers have boosted returns at some of Japan’s leading companies, according to new research.
Academics at Harvard Business School and the University of Toronto based their study on the shareholder-friendly JPX Nikkei Index 400, a gauge designed to showcase the nation’s most profitable large companies. Launched in 2014, the index’s membership is reviewed annually, with inclusion based on returns on equity, operating income and market value.