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.

In this article, I will examine the cancellation of treasury stock. I have discussed the importance of capital allocation and cash holdings several times in articles on this website. Retirement of treasury stock has also become a common practice among listed companies in Japan lately. Retirement of treasury stock is one of the most important alternatives in capital allocation. Here is a report on companies that have repurchased and retired their own shares and their performance indicators and corporate governance status.

In this article, I will examine the cancellation of treasury stock. I have discussed the importance of capital allocation and cash holdings several times in articles on this website. Retirement of treasury stock has also become a common practice among listed companies in Japan lately. Retirement of treasury stock is one of the most important alternatives in capital allocation. Here is a report on companies that have repurchased and retired their own shares and their performance indicators and corporate governance status.

Japan's Governance: Retirement of Treasury Stock and Performance, Corporate Governance

I would like to update my previous article "Who chairs the board?" as I discussed about the chairmanship of the board of directors.　In the previous article, I presented the situation regarding the chairmanship of the board of directors of listed companies in Japan using the Metrical Universe for August 2021 and now I would like to update the data for September 2021.　At the same time, I will also examine "Who is chairing the board of directors?  in the Metrical Universe.

I would like to update my previous article "Who chairs the board?" as I discussed about the chairmanship of the board of directors.　In the previous article, I presented the situation regarding the chairmanship of the board of directors of listed companies in Japan using the Metrical Universe for August 2021 and now I would like to update the data for September 2021.　At the same time, I will also examine "Who is chairing the board of directors?  in the Metrical Universe.

Japan's Governance: Who Chairs the Board?: Update

In this article, we will examine cash holdings. We have discussed the importance of capital allocation in several articles on this site. If we consider that cash holdings are the result of allocating funds to business investments such as capital expenditures and shareholder returns such as dividends and share buybacks, we can see cash holdings as one of the results of capital allocation.

In this article, we will examine cash holdings. We have discussed the importance of capital allocation in several articles on this site. If we consider that cash holdings are the result of allocating funds to business investments such as capital expenditures and shareholder returns such as dividends and share buybacks, we can see cash holdings as one of the results of capital allocation.

The annual shareholders meeting season in June is over, and there are now considerably fewer listed companies holding shareholders meetings. Although it is a somewhat calmer time, I would like to take up electronic voting again, as it is an important means of exercising voting rights, especially for overseas institutional investors.

The annual shareholders meeting season in June is over, and there are now considerably fewer listed companies holding shareholders meetings. Although it is a somewhat calmer time, I would like to take up electronic voting again, as it is an important means of exercising voting rights, especially for overseas institutional investors.

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Post market close yesterday, <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> announced that the Ministry of Finance (MOF) would be selling 1,027,477,400 shares of the company to pare their stake to the minimum mandated 33.3%. The sell down is 27% of the company shares and at the last price is worth JPY 952bn (US$8.55bn).<a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> also announced that they would be buying a maximum of 133m shares or up to JPY 100bn of their own shares following the supply-demand imbalance following the Ministry of Finance's offering.The news of the potential sell down has been swirling for the last week and the stock is down around 7.6% since then. With pricing of the offering to be determined between 25-27 October, the stock should head lower in the near term.The passive buying due to an increase in the free float of the stock, plus the buyback, will support <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a>. Both events together will mop up between 40-43% of the MOF offering.With the Ministry of Finance holding the minimum mandated stake in the company, the overhang will go away.

Post market close yesterday, Japan Post Holdings (6178 JP) announced that the Ministry of Finance (MOF) would be selling 1,027,477,400 shares of the company to pare their stake to the minimum mandated 33.3%. The sell down is 27% of the company shares and at the last price is worth JPY 952bn (US$8.55bn).Japan Post Holdings (6178 JP) also announced that they would be buying a maximum of 133m shares or up to JPY 100bn of their own shares following the supply-demand imbalance following the Ministry of Finance's offering.The news of the potential sell down has been swirling for the last week and the stock is down around 7.6% since then. With pricing of the offering to be determined between 25-27 October, the stock should head lower in the near term.The passive buying due to an increase in the free float of the stock, plus the buyback, will support Japan Post Holdings (6178 JP). Both events together will mop up between 40-43% of the MOF offering.With the Ministry of Finance holding the minimum mandated stake in the company, the overhang will go away.

Japan Post Holdings (6178 JP): Passive Buying + Buyback Will Mop Up MOF Offering

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)

Japan's Governance: Retirement of Treasury Stock and Performance, Corporate Governance

I would like to examine the status of key performance indicators and corporate governance practices by this share repurchase score.

Metrical Inc

Japan's Governance: Who Chairs the Board?: Update

This article will update "Who chairs the board?" with data from September 2021, and also examine a yearly time series starting in September...

Metrical Inc

Japan's Governance: Cash Holdings

Grouped by ％ of cash equivalents to total assets, the results will be tested on performance indices and corporate governance criteria. This is...

Metrical Inc

Japan's Governance: Electronic Voting

The high and low ratios of independent directors clearly correspond to the status of support for electronic voting and the provision of convocation...

Metrical Inc

Japan Post Holdings (6178 JP): Passive Buying + Buyback Will Mop Up MOF Offering

The MOF offering of Japan Post Holdings will remove the overhang from the stock. The passive buying from index trackers plus the buyback will...

Brian Freitas