Tokyo Insight: Buffett’s Approach Seen as Antidote to Activists

Japan’s efforts to bring in more investor funds from abroad to revitalize the economy are ironically resulting in cash flowing out of companies to shareholders, impeding increases in wages and capital spending, according to a prominent economist.

Policymakers in Japan have been urging companies to boost shareholder returns via steps including stock buybacks and and higher dividends, and the government has indicated that it’s not necessarily opposed to hostile takeovers of underperforming firms.