Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>Only 12.1% of prime market listed companies have a majority of independent outside directors who can at least ensure the independence of the board of directors.</li>
<li>On the nominating/compensation committees, 1/3 of companies are chaired by an inside director. Few committees have clear policies for selecting directors/CEO, and aren involved in determining compensation of individual directors.</li>
<li>More companies are complying with regard to sustainability. However, it is necessary to analyze whether the target is an acceptable time frame and whether the target value is too low.</li>
</ul>


Only 12.1% of prime market listed companies have a majority of independent outside directors who can at least ensure the independence of the board of directors.
On the nominating/compensation committees, 1/3 of companies are chaired by an inside director. Few committees have clear policies for selecting directors/CEO, and aren involved in determining compensation of individual directors.
More companies are complying with regard to sustainability. However, it is necessary to analyze whether the target is an acceptable time frame and whether the target value is too low.


Main Issue Is the Content Rather than the Progress in Complying with the Corporate Governance Code

<ul>
<li>If we want to increase women directors even to growth market companies, we can solve this problem by extending the scope of this comply-or-explain requirement to growth market companies.</li>
<li>It is a fact that companies with top female executives have more women on their boards of directors. It’s required to create support to increase the number of women founders.</li>
<li>Rather than setting targets for the ratio of female managers, which are vague and unworkable, a framework should be created to support female founders.</li>
</ul>


If we want to increase women directors even to growth market companies, we can solve this problem by extending the scope of this comply-or-explain requirement to growth market companies.
It is a fact that companies with top female executives have more women on their boards of directors. It’s required to create support to increase the number of women founders.
Rather than setting targets for the ratio of female managers, which are vague and unworkable, a framework should be created to support female founders.


Women Founders Should Be Supported Rather than Goals that Are Less Feasible for Achieving Diversity

<ul>
<li>The current criteria of 10 billion-yen in tradable market capitalization is too small by definition of prime market, "market-cap suitable for institutional investors," and should be reviewed in near future.</li>
<li>It's natural that there will be difference in the stock prices of companies that can show results that are in line with their disclosed plans and those that are not.</li>
<li>Simply raising shareholder returns won't, in theory, positively impact on stock price. Mere increased shareholder returns would be seen as sign that the company reached the end of its rope.</li>
</ul>


The current criteria of 10 billion-yen in tradable market capitalization is too small by definition of prime market, "market-cap suitable for institutional investors," and should be reviewed in near future.
It's natural that there will be difference in the stock prices of companies that can show results that are in line with their disclosed plans and those that are not.
Simply raising shareholder returns won't, in theory, positively impact on stock price. Mere increased shareholder returns would be seen as sign that the company reached the end of its rope.


Shareholder Returns Offered by Companies that Do Not Meet Prime Market Listing Criteria Are.....

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

S&P BSE SENSEX Index / Technical Analysis

<ul>
<li>Many major indexes are still testing (and holding above) critical supports. This includes MSCI ACWI (ACWI-US), TOPIX/TOPIX Small/Nikkei 225, EURO STOXX 50, STOXX Europe 600, and the DAX</li>
<li>Our overall outlook remains neutral, and we continue to see many attractive buying opportunities, especially out of Japan, India, and a new one -- Brazil.</li>
<li>Buy ideas focus on the Consumer Discretionary and Financials Sectors, with the vast majority of stock recommendations from Japan, India, and Brazil</li>
</ul>


Many major indexes are still testing (and holding above) critical supports. This includes MSCI ACWI (ACWI-US), TOPIX/TOPIX Small/Nikkei 225, EURO STOXX 50, STOXX Europe 600, and the DAX
Our overall outlook remains neutral, and we continue to see many attractive buying opportunities, especially out of Japan, India, and a new one -- Brazil.
Buy ideas focus on the Consumer Discretionary and Financials Sectors, with the vast majority of stock recommendations from Japan, India, and Brazil


Europe, Japan, $ACWI Testing Critical Supports; Rising DXY, Global Sovereign Yields a Major Headwind

<ul>
<li>In my previous analysis, I found that firms with high frequency of share repurchase cancellations increased their market capitalization during the relevant period (12/2021-1/2022).</li>
<li>Even though the short-term share price performances of companies that announced share repurchases were mixed, the share prices of companies with track record of several share repurchases have risen.</li>
<li>It takes certain amount of time for investors to understand the track record and the capital allocation policy is consistent with the goal of increasing corporate value over the-long run.</li>
</ul>


In my previous analysis, I found that firms with high frequency of share repurchase cancellations increased their market capitalization during the relevant period (12/2021-1/2022).
Even though the short-term share price performances of companies that announced share repurchases were mixed, the share prices of companies with track record of several share repurchases have risen.
It takes certain amount of time for investors to understand the track record and the capital allocation policy is consistent with the goal of increasing corporate value over the-long run.


Effective Share-Buyback Require Proven Track Record and Communication to Gain Investor Understanding

Japan

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

TSE Tokyo Price Index TOPIX (TPX INDEX)

Main Issue Is the Content Rather than the Progress in Complying with the Corporate Governance Code

I would like to discuss the issues on the "Status of Compliance with the Corporate Governance Code" released by the TSE.

Metrical Inc

Women Founders Should Be Supported Rather than Goals that Are Less Feasible for Achieving Diversity

I would like to discuss the issues on the Nikkei article, "Women on board of directors is a challenge for 50% of emerging market listed companies...

Metrical Inc

Shareholder Returns Offered by Companies that Do Not Meet Prime Market Listing Criteria Are.....

I would like to discuss the issues on "There is a difference in stock performance depending on the degree of accomplishment of plans of companies...

Metrical Inc

Europe, Japan, $ACWI Testing Critical Supports; Rising DXY, Global Sovereign Yields a Major Headwind

Europe $STOXX 50, Japan $TOPIX $Nikkei 225, $ACWI Testing Critical Supports; Rising $DXY, Global Sovereign Yields Remain Major Headwinds for global...

Vermilion Research

Main Issue Is the Content Rather than the Progress in Complying with the Corporate Governance Code

I would like to discuss the issues on the "Status of Compliance with the Corporate Governance Code" released by the TSE.

Metrical Inc

Women Founders Should Be Supported Rather than Goals that Are Less Feasible for Achieving Diversity

I would like to discuss the issues on the Nikkei article, "Women on board of directors is a challenge for 50% of emerging market listed companies...

Metrical Inc

Shareholder Returns Offered by Companies that Do Not Meet Prime Market Listing Criteria Are.....

I would like to discuss the issues on "There is a difference in stock performance depending on the degree of accomplishment of plans of companies...

Metrical Inc

Europe, Japan, $ACWI Testing Critical Supports; Rising DXY, Global Sovereign Yields a Major Headwind

Europe $STOXX 50, Japan $TOPIX $Nikkei 225, $ACWI Testing Critical Supports; Rising $DXY, Global Sovereign Yields Remain Major Headwinds for global...

Vermilion Research

Effective Share-Buyback Require Proven Track Record and Communication to Gain Investor Understanding

I would like to discuss the issues on the Nikkei article that states, "Although many companies announce share repurchases, not all of them increase...

Metrical Inc