Japan’s Cash-Rich Firms May Face Pressure After Takaichi Win

Cash-rich companies in Japan may feel the heat after the election win of the pro-stimulus conservative Sanae Takaichi, as she has in the past expressed concerns about excess corporate cash holdings, according to some strategists.

Takaichi proposed the idea of ‘taxing corporate cash and deposits’ in her book in 2021, and said during last year’s election campaign that revisions to Japan’s corporate governance code should require companies to specify the use of retained earnings, said analysts at Okasan Securities, including Daisuke Uchiyama, in a report.

“She consistently gives the impression of having a strong awareness of the issues ...