Surge in Management Buyouts Gives Extra Boost to Japanese Stocks
- Increasing deals train focus on TSE’s push to raise valuations
- Trend suggests corporate inefficiencies are being fixed: MUMSS
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The best rally in a decade for Japanese stocks is being amplified by a surge in buyouts from company executives.
The volume of management buyouts has increased to the highest on record this year, spurring expectations that removing weaker companies from the market may help improve valuations of listed ones. That brings into focus the Tokyo Stock Exchange’s campaign to improve corporate governance, which is underpinning bullish calls on the nation’s stocks.