Japan’s PM opens door to new guidelines on corporate buybacks By Reuters

Japan's PM opens door to new guidelines on corporate buybacks By Reuters
Japan's PM opens door to new guidelines on corporate buybacks© Reuters. FILE PHOTO: Japan’s Prime Minister Fumio Kishida speaks to media at his official residence in Tokyo, Japan November 24, 2021. Mandatory credit Kyodo/via REUTERS/File Photo

TOKYO (Reuters) – Japan’s Prime Minister Fumio Kishida suggested to parliament on Tuesday that he was willing to consider new guidelines for corporate share buybacks, while stressing the need for care regarding blanket regulations on such corporate activity.

Investors have long criticised Japanese firms for hoarding cash rather than investing it or returning it to shareholders, hurting their returns on equity.

After Kishida’s comments, the benchmark and the broader index both ended in the red, slipping deeper into negative territory after the lunch break.

“We should be careful about uniformly regulating this as there are various circumstances and judgements by companies,” Kishida said in response to a question about…

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