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>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

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.

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

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.

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

Following the previous article "Retirement of treasury stock", this time I will examine the dividend policy. Retirement of treasury stock is positively correlated with ROA (actual) and Tobin's q, and companies that have retired treasury stock three or more times have significantly better performance on key performance indicators ROE (actual), ROA (actual), and Tobin's q. Similarly, in the evaluation of corporate governance practices (including actions), the Metrical Corporate Governance Score, % Independent Directors, Equity Issuance Score, and Dividend Policy Score, the 100 companies that have retired their own shares three or more times have significantly higher scores than the companies that have retired their shares less frequently. This indicates that these companies have a strong awareness of the need to improve their corporate governance.

Following the previous article "Retirement of treasury stock", this time I will examine the dividend policy. Retirement of treasury stock is positively correlated with ROA (actual) and Tobin's q, and companies that have retired treasury stock three or more times have significantly better performance on key performance indicators ROE (actual), ROA (actual), and Tobin's q. Similarly, in the evaluation of corporate governance practices (including actions), the Metrical Corporate Governance Score, % Independent Directors, Equity Issuance Score, and Dividend Policy Score, the 100 companies that have retired their own shares three or more times have significantly higher scores than the companies that have retired their shares less frequently. This indicates that these companies have a strong awareness of the need to improve their corporate governance.

Japan's Governance: Dividend Policy and Performance, Corporate Governance

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

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: 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

Japan's Governance: Dividend Policy and Performance, Corporate Governance

With regard to the Dividend Policy Score, the 224 companies with the lowest Dividend Policy Scores show a certain relationship with the key...

Metrical Inc

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