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>Companies are now required to set concept and measurable targets for diversity in management positions (appointment of women, foreigners, and mid-career hires) and disclose them, but they are voluntary targets.</li>
<li>Number of companies in Metrical Universe by number of female directors shows 28.9% companies have no female directors, 42.5% have 1 female director, and only 28.6% have 2 or more.</li>
<li>Problem of delay in appointing women and foreigners to managers lies in the fact that few companies employ diversity management to incorporate benefits of sharing diverse values into the management.</li>
</ul>


Companies are now required to set concept and measurable targets for diversity in management positions (appointment of women, foreigners, and mid-career hires) and disclose them, but they are voluntary targets.
Number of companies in Metrical Universe by number of female directors shows 28.9% companies have no female directors, 42.5% have 1 female director, and only 28.6% have 2 or more.
Problem of delay in appointing women and foreigners to managers lies in the fact that few companies employ diversity management to incorporate benefits of sharing diverse values into the management.


Japan's Governance: Revised Corporate Governance Code: Ensuring Diversity in Core Human Resources

<ul>
<li>The revised Code of Corporate Governance states that companies listed on the prime market are required to use an e-voting platform and disclose information in English.</li>
<li>Many listed companies have already provided e-voting platforms, but lagging behind in providing disclosure of required information in English.</li>
<li>Companies with a high English document disclosure score (i.e., those with a high English document disclosure score) generally perform better.</li>
</ul>


The revised Code of Corporate Governance states that companies listed on the prime market are required to use an e-voting platform and disclose information in English.
Many listed companies have already provided e-voting platforms, but lagging behind in providing disclosure of required information in English.
Companies with a high English document disclosure score (i.e., those with a high English document disclosure score) generally perform better.


Japan's Governance: Prime Market Listing Criteria and Use of E-Voting Platform/Disclosure in English

<ul>
<li>The revised CG Code requires companies in prime market to have at least 1/3 independent directors. 58% of listed companies have at least 1/3 independent directors and 6% have majority.</li>
<li>Companies with % independent directors of over 50% have the best performance and CG practices, while those with % above 33.33% but below 50% have the lowest Tobin's q.</li>
<li>In fact, companies with % independent directors between 33.33% and 50% constitute the majority of the prime market, so the fact that their stock prices are not valued is serious.</li>
</ul>


The revised CG Code requires companies in prime market to have at least 1/3 independent directors. 58% of listed companies have at least 1/3 independent directors and 6% have majority.
Companies with % independent directors of over 50% have the best performance and CG practices, while those with % above 33.33% but below 50% have the lowest Tobin's q.
In fact, companies with % independent directors between 33.33% and 50% constitute the majority of the prime market, so the fact that their stock prices are not valued is serious.


Japan's Governance: TSE Prime Market Listing Standards and % of Independent Directors

<p>I have mentioned growth policies and KPIs several times in previous articles, and at Metrical I have considered not only the composition and practices of the board of directors, but also the actions of the company in evaluating corporate governance.</p>

I have mentioned growth policies and KPIs several times in previous articles, and at Metrical I have considered not only the composition and practices of the board of directors, but also the actions of the company in evaluating corporate governance.

Japan's Governance: Growth Policy and KPIs

<p>Following the previous articles, "Retirement of treasury stock and performance, corporate governance" and "Dividend policy and performance, corporate governance," this examination of equity issuance is a three-part series. Surprisingly, interesting analysis results were confirmed in each of these sections.</p>

Following the previous articles, "Retirement of treasury stock and performance, corporate governance" and "Dividend policy and performance, corporate governance," this examination of equity issuance is a three-part series. Surprisingly, interesting analysis results were confirmed in each of these sections.

Japan's Governance: Equity Issuance and Performance, Corporate Governance

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: Revised Corporate Governance Code: Ensuring Diversity in Core Human Resources

This article will focus on "Ensuring diversity in the company's core human resources," which was added as supplementary principle 2-4(1) to the...

Metrical Inc

Japan's Governance: Prime Market Listing Criteria and Use of E-Voting Platform/Disclosure in English

The Corporate Governance Code includes to use e-voting platforms and disclose information in English for the Prime Market listing criteria. This...

Metrical Inc

Japan's Governance: TSE Prime Market Listing Standards and % of Independent Directors

The revised CG Code requires companies in prime market to have at least 1/3 independent directors. This article examines them in performance and CG...

Metrical Inc

Japan's Governance: Growth Policy and KPIs

It’s crucial not only to set targets but also to make sure that the targets are reasonable, properly allocated to investments for growth and...

Metrical Inc

Japan's Governance: Equity Issuance and Performance, Corporate Governance

Following the previous 2 articles, "Retirement of treasury stock" and "Dividend policy," the equity issuance also shows interesting analysis...

Metrical Inc