| Hedge funds are beginning to realize that their tried and true
bullying strategy in order to force companies to increase dividends
and shareholder profits will not work in Japan. After trying and being
dismissed time and again by Japanese shareholders for their `hostile'
approaches, hedge funds are getting smart. They have begun to realize
that cultural differences do in fact matter- and if they can remain
under the radar of the media they will not appear as foreign
aggressors trying to manipulate companies for short term profits- an
image that is especially damaging in a country where a long term out
look is of great importance. Companies are seeking to exert pressure
on company managers behind closed doors; the threat of replacing
senior management is much more effective. While no one expects a
drastic change in Japanese business there are `signs companies are
becoming more responsive to investors' demands, especially if it means
avoiding public embarrassment at a shareholder meeting.' |
