Today’s Business Japanese is “Kabu no mochiai”(Ownership of share with each other).
This is specific business practice of Japanese companies.
We have several Zaibatsu group such as Mitsubishi, Mitsui, and Sumitomo in Japan.
Companies in the same Zaibatsu group own stock with each other and they never sell them at the stock market.
The reasons are to avoid the big stock price change, to prevent hostile M&A, and to say “No” to the extreme requests by the shareholders.
This style of management is called “Gosou-sendan-houshiki”
Did you know it？
