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.

An analysis of a company's corporate governance practices and value-creating performance is critical to improving the effectiveness of engagement and stewardship. By examining the metrical board practices (board corporate governance guidelines, practices, and structure) and specific actions (actual corporate behavior) separately, we seek to identify statistically significant correlations between the three financial performance measures (ROE, ROA, and Tobin's Q) for each, i.e., board practices and actions, respectively. In other words, we are trying to find statistically significant correlations between the three financial performance indicators (ROE, ROA, and Tobin's Q) for each board practice and action. This is because, since the introduction of the Corporate Governance Code, there has been some improvement in the activities of the Board of Directors. However, assuming that one of the important goals of a company is value creation, it is very important to regularly analyze whether such improvements (specifically, what kind of improvements) lead to value creation in order to improve the effectiveness of engagement and stewardship. In this article, we will focus on an analysis of the performance of companies where independent outside directors make up the majority of the board of directors, compared to the universe as a whole.

An analysis of a company's corporate governance practices and value-creating performance is critical to improving the effectiveness of engagement and stewardship. By examining the metrical board practices (board corporate governance guidelines, practices, and structure) and specific actions (actual corporate behavior) separately, we seek to identify statistically significant correlations between the three financial performance measures (ROE, ROA, and Tobin's Q) for each, i.e., board practices and actions, respectively. In other words, we are trying to find statistically significant correlations between the three financial performance indicators (ROE, ROA, and Tobin's Q) for each board practice and action. This is because, since the introduction of the Corporate Governance Code, there has been some improvement in the activities of the Board of Directors. However, assuming that one of the important goals of a company is value creation, it is very important to regularly analyze whether such improvements (specifically, what kind of improvements) lead to value creation in order to improve the effectiveness of engagement and stewardship. In this article, we will focus on an analysis of the performance of companies where independent outside directors make up the majority of the board of directors, compared to the universe as a whole.

Japan's Governance: Performance of Companies with a Majority of INEDs on the Board

As a result of this year's TSE reorganization, listed companies will be required to choose between the Prime Market and the Standard Market, and will be required to meet the requirements of the recently revised Corporate Governance Code. The revised version of the Corporate Governance Code has principles that explain recommendations limited to the prime market, the main one being that the ratio of independent outside directors on the board of directors should be at least one-third (before the revision, there were at least two independent outside directors). What changes will the revised Corporate Governance Code, which will be revised in conjunction with the TSE reorganization, bring to governance?

As a result of this year's TSE reorganization, listed companies will be required to choose between the Prime Market and the Standard Market, and will be required to meet the requirements of the recently revised Corporate Governance Code. The revised version of the Corporate Governance Code has principles that explain recommendations limited to the prime market, the main one being that the ratio of independent outside directors on the board of directors should be at least one-third (before the revision, there were at least two independent outside directors). What changes will the revised Corporate Governance Code, which will be revised in conjunction with the TSE reorganization, bring to governance?

Japan's Governance: Tokyo Stock Exchange Reorganization and the Future of Corporate Governance

Founder & Chief Market Strategist - SAV Markets, SAV Markets

Shyam Devani

Founder & Chief Market Strategist - SAV Markets

Technical Analysis

TSE Tokyo Price Index TOPIX / Technical Analysis

The two charts below look at both the Topix Index and the Nikkei 225.In the case of the Topix , we are now sustaining below the 55 day moving average thereby opening up the risk of losses to the tune of 6% from current levels.For the Nikkei 225, there is no break yet but we sit on key levels that are pivotal for the market in the short term.

The two charts below look at both the Topix Index and the Nikkei 225.In the case of the Topix , we are now sustaining below the 55 day moving average thereby opening up the risk of losses to the tune of 6% from current levels.For the Nikkei 225, there is no break yet but we sit on key levels that are pivotal for the market in the short term.

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

TSE Tokyo Price Index TOPIX / Event-Driven

Every year for the past few I publish a Japan Dividend Trade notice.
This year my comments are a little different. 
And it has to do with the rebalance after the <a href="https://www.smartkarma.com/entities/ntt-docomo-inc" target="_blank" data-smartkarma-citation="entities:1089:1" rel="noopener">NTT Docomo Inc (9437 JP)</a> tender offer and the general situation (waves hands vaguely at worst selloff in bond indices in years).

Every year for the past few I publish a Japan Dividend Trade notice.
This year my comments are a little different. 
And it has to do with the rebalance after the NTT Docomo Inc (9437 JP) tender offer and the general situation (waves hands vaguely at worst selloff in bond indices in years).

2021 JAPAN DELTA:  This Year's Div Trade Not Like Last Year's Div Trade

Following the note sent yesterday titled <a href="https://www.smartkarma.com/insights/spx-one-year-later-what-next" target="_blank" data-smartkarma-citation="insights:49528" rel="noopener">SPX: One Year Later...What Next?</a> highlighting the weakness in momentum on major US indices (S&amp;P 500, Dow Jones Industrial Average, and Russell 2000), here we find the same bearish signs on the Topix Index.Unless we are to bounce back fairly aggressively by the end of this week, we will be completing triple negative divergence on the weekly chart – an important warning sign that there is trouble ahead.

Following the note sent yesterday titled SPX: One Year Later...What Next? highlighting the weakness in momentum on major US indices (S&amp;P 500, Dow Jones Industrial Average, and Russell 2000), here we find the same bearish signs on the Topix Index.Unless we are to bounce back fairly aggressively by the end of this week, we will be completing triple negative divergence on the weekly chart – an important warning sign that there is trouble ahead.

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: Performance of Companies with a Majority of INEDs on the Board

In this article, we will focus on an analysis of the performance of companies where independent outside directors make up a majority of the board...

Metrical Inc

Japan's Governance: Tokyo Stock Exchange Reorganization and the Future of Corporate Governance

Investors are mixed in expectations and skeptical that the upcoming reorganization of TSE will improve the corporate governance of companies in the...

Metrical Inc

Japanese Indices Remain on Back Foot

The bearish break on the Topix Index as well as the key levels being tested on the Nikkei 225 warrant serious concern in the short term

Shyam Devani

2021 JAPAN DELTA: This Year's Div Trade Not Like Last Year's Div Trade

Japan's Annual Dividend Trade is big, and this year, despite some economic weakness since last year, it is still quite bigly. But there may be...

Travis Lundy

Japan Is Not Immune

Signs of weakness are now apparent on Japan's Indices. Any lower on the Nikkei 225 could open the way for an 8% decline from here

Shyam Devani