Japan Inc. speeds unwinding of cross-held shares amid rally
TOKYO -- Japan's stock market rally makes an appealing environment for companies to unwind their cross-shareholdings, as they come under heightened pressure to improve their corporate governance.
Cross-shareholdings refer to companies owning shares in one another. The practice took off after World War II as a way for Japanese companies to fend off hostile takeovers, but it has been blamed for tying up capital and encouraging anti-competitive behavior.