UK Accounting Glossary
In Japan, when a company buys valuable paintings, objects etc in order to hide the profits it has made.
NOUN (plural zaitechs)
an investment in the financial markets by a company in order for it to supplement its main income.
From the early 1960s to the late 1980s, Japan had one of the highest economic growth rates in the world.
The combination of these two actions was important to the creation of a speculative bubble:
After obtaining low-interest loans, corporations were easily able to raise funds on the markets.
As the Japanese stockmarket kept zooming higher and higher, corporations were able to report their speculative profits as increased earnings.
At the end of the decade, speculation dominated the activities of some businesses:
It was estimated that perhaps 40 to 50% of the total reported profits from Japan’s largest corporations were derived from “zaitech!”
In May 1989, it tightened monetary policy by raising interest rates and ordered another hike on December 25.
Throughout the 1990s, Japan experienced slower growth than any other major industrial nation.
From Japanese 財テク (zaiteku, “money management”), from a blend of 財務 (zaimu, “financial dealings”) and テクノロジー (tekunorojii, “technology”), the latter, from English technology. The -tech in zaitech reflects the original borrowing of English technology.
Many Japanese corporate collectors appear to have used high-priced art for tax purposes, a practice known here as ‘zaitech’.
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Definitions for Zaitech are sourced/syndicated and enhanced from:
This glossary post was last updated: 9th December 2019.