Testing the Economic Rationality of Cross-Shareholdings
First written in FY2020. 1 of 3 entries say "Advanced", first in FY2022. Latest entry: FY2023.
- FY2023ReframedAnnual report
「During the fiscal year, the purpose of holding investment shares was changed from purposes other than pure investment to pure investment for the following holdings: 株式会社フジ, 43,923 shares; 株式会社ジーフット, 30,000 shares.」
Regarding cross-shareholdings, the Company reclassified the purpose of its holdings and disclosed the transfer of shares held for purposes other than pure investment to holdings for pure investment purposes. Excluding unlisted shares, the Company held 2 cross-shareholdings, with a carrying amount of ¥322 million. - FY2022AdvancedAnnual report
「株式会社マックスバリュ西日本株式会社\nComparison with cost of capital: +115 points」
The company compared the benefits of holding individual strategic shareholdings with its cost of capital and disclosed a difference of 115 points for shares in マックスバリュ西日本. It holds 4 strategic shareholdings with a total balance-sheet carrying amount of ¥400 million. - FY2020First statedAnnual report
「For investment shares carried over as strategic shareholdings, the company reports them to the Board of Directors and verifies the economic rationale for retaining each issue by comparing the benefits of holding it, namely the return on acquisition cost (cumulative other comprehensive income plus annual dividends and other income, after tax-effect adjustments), with the company’s cost of capital. It then determines whether to retain each issue after comprehensively considering the maintenance and strengthening of business relationships and the medium- to long-term benefits of holding the shares.」
A new policy was disclosed for strategic shareholdings carried over through the management integration, involving reporting to the Board of Directors, comparing the benefits of holding the shares with the cost of capital, and reviewing whether to retain them based on business relationships and medium- to long-term benefits.