Report
Patrick Artus

What options are there to reduce the return on equity for shareholders?

In OECD countries, the gap between the return on equity for shareholders and risk-free interest rates has become patently excessive. What options are there to reduce this gap? Increase wages and correct the skewing of income distribution; Increase investment , including lower-return investments; Reduce corporate debt leverage and replace debt with equity; Increase competition to eliminate the rents that result from dominant positions; Carry out capital increases reserved for employees. All these developments would in fact be positive.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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