Lecturer: Ms. Kyoka Ishizuki
Profile: After graduating from the Department of Political Science, Faculty of Law at Keio University in 2022, Ms. Ishizuki joined the Investment Banking Division of Morgan Stanley as a new graduate. She belongs to the General Industries Group, which covers sectors including Auto, Transportation, Healthcare, Chemical, Consumer Retail, Basic Materials, Global Power & Utilities, and Trading Companies. Currently in her fourth year, she specializes in Consumer Retail and Chemicals, where she is responsible for proposing and executing M&A and financing transactions. Since entering university, she has been a member of KIP, participating in various projects, overseas training, and regional study programs. She has also served as the Chairperson of the committee.
【Speech and Q&A】
Previously, I held the impression that economic news—such as exchange rates and trends in listed companies—was esoteric, and I rarely engaged with it deeply. However, through this lecture and the preparatory study, I keenly realized that while the economy is more complex than I imagined, it is also a dynamic world that changes moment by moment. I was particularly struck by the case study tracking the timeline of the acquisition proposal for Seven & i Holdings by ACT. Additionally, I learned about aspects of investment banking operations that are not visible in ordinary news. Specifically, I discovered how individual investors contribute to market stability by taking contrarian positions (buying when prices fall), and how foreign and institutional investors play a vital role as major players in revitalizing the market. The professional perspective of constructing an optimal shareholder composition (portfolio) for each company was a completely new discovery for me, making this a valuable opportunity to learn about the depths of the capital markets.
【Floor discussion】
In the discussion, we debated the topic: “Do unsolicited acquisitions by foreign capital benefit Japan?” I took the position that they do benefit Japan (Pro). I had two main reasons for this. First, the pressure of a potential acquisition serves as a “powerful stimulus for management reform” for a company, which I believe results in improved productivity. Second, the fact that an acquirer is willing to pay high costs suggests that the target company possesses significant “hidden value.” For the acquiring side to enjoy that value (profit), the sustainable growth of the acquired company is essential. Since mistreating employees would damage corporate value and render the acquisition pointless, I inferred that even hostile takeovers do not necessarily lead to negative outcomes. In response to this opinion, other participants pointed out that I might be “too optimistic.” Going forward, I intend to use the news to scrutinize the reality of such transactions, specifically regarding what objectives companies actually have when launching acquisitions and how the post-merger integration processes unfold.
【Personal Opinion】
Through this forum, I reaffirmed the complexity of the economy, where a wide variety of actors exist and interact with one another. At the same time, I learned about the negative aspects of the Japanese economy, specifically its “weak earning power” and the “stagnation of capital circulation toward capital expenditure.” I understood that utilizing idle assets and revitalizing investment are the keys to breaking this vicious cycle.
Until now, I have invested in overseas stocks simply because of their good interest rates, but I intend to revise this approach. By adopting a perspective of supporting Japanese industry and actively investing in domestic companies, I hope to contribute—however humbly—to the economic circulation. Finally, I would like to express my deepest gratitude for this valuable opportunity to be exposed to diverse viewpoints and to sharpen my perspective on the economy.
Kotaro Ahiko, Tohoku University, Engineering, 3rd year