It seems that, for Japanese firms, cash is king. By holding on to cash rather than investing it or distributing it in dividends, Japanese businesses could be stifling the economic growth that Abenomics is set on achieving. So why do Japanese companies continue to hold large amounts of cash, and what could loosen their purse strings? Though highly technical, this report from economics scholar Galen Sher offers noteworthy insights into how Japan could recharge its economy. getAbstract recommends it to economists, investors and analysts who are on Japan-watch.
In this summary, you will learn
- What economic implications high levels of corporate cash have for Japan’s economy,
- Why those cash levels remain so high, and
- What policies might effectively discourage cash accumulation in order to stimulate wage and economic growth.
About the Author
Galen Sher is a PhD candidate in economics at Oxford University.
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