Koito Case

Question 3 case Koito. Beside board representation, T. Boone Pickens demanded higher dividend payouts . Were his demands stomach? Provide quantitative evidence to back your answer. Is there anything in the Japanese commercial code that would allow Pickens to try to recover more dividends? If yes, why doesnt he use this? If not, grounds on your experience as an international investment banker, what changes would you argue him to purpose? Pickens demanded higher dividend payouts in 1989 after he bought the overlaps. When he bought the shares, we can assume given his status that he knew almost the corporate culture in Japan: that is, contrary to US in which most managers would maintain dividends even if they have to set off a number of employees, in Japan, managers tend to troop that executives should maintain stable employment even if they must give notice dividends (Allen, Zhao, 2007). The American corporate governance culture is more shareholders heighten while in Japan they favor stakeholder as a whole. The quotes from the meeting between Mr Pickens and Mr Matsuura epitomize well this difference. In tack together to see if his demand for higher dividend was justified, we should first investigate the organic fertiliser growing of the financial situation of Koito and the pay-out policy of Koito. Graph 3.1 developing of the Dividend Yield.

From the interpret 3.1, we can observe that the dividend yield (Dividend/Share Price) lessen crisply between 1982 and 1989. That is, the dividends did not increase as rapidly as the stock price. However, this is justified by the fact that the recompense per share remained quite stable, ! while the stock price was increasing. This would cut the change magnitude dividend yield. However, in methodicalness to determine whether or not Koito is pay too low dividends, we should analyze how the heart of dividend per shares has moved in comparison to the earnings per shares. The graph 3.2 emphasizes the evolution of the dividend/share and the earnings per share. On the...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay