Mar. 1--TOKYO -- An increasing number of companies are abolishing benefit programs for stockholders as the global recession bites, according to sources.

Under such benefit programs, companies offer items and/or services to their stockholders, in addition to dividends, aiming to encourage the shareholders to keep their stocks for an extended period.

According to Nomura Investor Relations Co., 73 of the companies listed on domestic bourses had abolished such programs in fiscal 2008 as of Wednesday, the largest number since the Nomura IR started the survey in fiscal 2003. During the same period, 41 companies, down from 88 in the previous fiscal year, introduced such programs.

Observers said investment in stock may become less attractive due to the abolition of benefit programs, along with plummeting stock prices and dividend cuts.

In fiscal 2006, 106 companies introduced such programs, while 45 companies abolished theirs, according to Nomura IR. The company said the number of companies that abolished such programs in fiscal 2008 increased due to deteriorating business performance.

The number of companies that offered such programs quadrupled during the period from the end of September 1993 to the end of September 2008, when businesses enjoyed relatively healthy economic conditions.

During that period, about 1,100 companies, about 30 percent of those listed, offered such programs. The number is expected to slow or fall in the latter half of fiscal 2008 and later.

Nissan Motor Co., which expects to report an operating deficit for the first time in 14 years, has stopped giving shareholders tickets for Yokohama F-Marinos J.League soccer team games and Skyline toy cars, which are not available for sale.

"We considered continuing the benefit programs using different items, but instead ended them," Nissan's public relations section said.

Sagami Ham Co., which expects to see a deficit in after-tax income in fiscal 2008, suspended distribution of ham parcels worth about 4,000 yen to stockholders. The company said the measure would save about 3 million yen.

Some companies' share prices fell after they announced the termination of such programs.

"I have stocks in an airline, a sports club and other companies, and I'm looking forward to presents from them," said a 46-year-old investor from Yokohama. "I can't sell my stocks even if I want to, because their prices are falling. I'm disappointed that an increasing number of companies are abolishing benefit programs, as investment is one of my few hobbies."

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