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 August last year, Metrical proposed an investment strategy from the perspective of corporate governance, which was discussed in the article "Japan's Governance: Parent-Subsidiary Listing and Investment Strategy" on this website in June this year. Parent-subsidiary listing is a practice that is unique to the Japanese stock market and is not commonly seen in markets in other regions. The liquidity standards for the prime market that accompanied the TSE's market reclassification led to an increase in the number of acquisitions of listed subsidiaries by their parent companies, as exemplified by SECOM's TOB of SECOM Joshinetsu. In this article, I would like to examine the "parent-subsidiary listing investment strategy" again using the latest data.

In August last year, Metrical proposed an investment strategy from the perspective of corporate governance, which was discussed in the article "Japan's Governance: Parent-Subsidiary Listing and Investment Strategy" on this website in June this year. Parent-subsidiary listing is a practice that is unique to the Japanese stock market and is not commonly seen in markets in other regions. The liquidity standards for the prime market that accompanied the TSE's market reclassification led to an increase in the number of acquisitions of listed subsidiaries by their parent companies, as exemplified by SECOM's TOB of SECOM Joshinetsu. In this article, I would like to examine the "parent-subsidiary listing investment strategy" again using the latest data.

Japan's Governance: Parent Subsidiary Listing Investment Strategy Update

As mentioned in my previous articles, "TSE Prime Market Listing Requirements and Revised Corporate Governance Code" and "Tokyo Stock Exchange Reorganization and the Future of Corporate Governance", TSE is aiming to revise its Corporate Governance Code by December as part of the reorganization of the Tokyo Stock Exchange's market classification. One of the main features of the revised Corporate Governance Code is expected to be "increasing the ratio of independent outside directors on the board of directors to at least one-third in the principles that explain recommendations limited to the prime market.

As mentioned in my previous articles, "TSE Prime Market Listing Requirements and Revised Corporate Governance Code" and "Tokyo Stock Exchange Reorganization and the Future of Corporate Governance", TSE is aiming to revise its Corporate Governance Code by December as part of the reorganization of the Tokyo Stock Exchange's market classification. One of the main features of the revised Corporate Governance Code is expected to be "increasing the ratio of independent outside directors on the board of directors to at least one-third in the principles that explain recommendations limited to the prime market.

Japan's Governance: Revision of CG Code and Concurrently Serving as Outside Directors

When a company thinks about social issues, it is important to start by thinking about whether people will suffer from it in the workplace and in all aspects of providing products and services, rather than thinking about it as a big problem. S and G are areas that can be improved by changing attitudes, even in companies that are not large or well financed. I hope that today, one of the days that should not be forgotten by the Japanese people, we will once again think about what we can do to realize a society that does not produce discrimination and make this the start of a step-by-step initiative.

When a company thinks about social issues, it is important to start by thinking about whether people will suffer from it in the workplace and in all aspects of providing products and services, rather than thinking about it as a big problem. S and G are areas that can be improved by changing attitudes, even in companies that are not large or well financed. I hope that today, one of the days that should not be forgotten by the Japanese people, we will once again think about what we can do to realize a society that does not produce discrimination and make this the start of a step-by-step initiative.

Japan's Governance: Social and Familiar Issues

In my previous article, "Disclosure of Corporate Governance Report in English," I reported on information disclosure in English. In this article, I would like to think about information disclosure in English again. According to the "Availability of English Disclosure Information by Listed Companies" of the Tokyo Stock Exchange, Tokyo Stock Exchange compiles the availability of the following information in English: "Timely Disclosure Documents," "Notices of General Shareholders Meetings," "Corporate Governance Report," "Annual Securities Reports," "IR Presentations," and “IR Website English Links."

In my previous article, "Disclosure of Corporate Governance Report in English," I reported on information disclosure in English. In this article, I would like to think about information disclosure in English again. According to the "Availability of English Disclosure Information by Listed Companies" of the Tokyo Stock Exchange, Tokyo Stock Exchange compiles the availability of the following information in English: "Timely Disclosure Documents," "Notices of General Shareholders Meetings," "Corporate Governance Report," "Annual Securities Reports," "IR Presentations," and “IR Website English Links."

Japan's Governance: Information Disclosure in English

The disclosure of corporate governance reports on advisors and advisory board members began in 2018, and Metrical added this item to its criteria of listed companies beginning with the disclosure of the same year. At the time, this item attracted a lot of attention, but it must be said that interest in this item has declined somewhat since then. At that time, this item was added to the Corporate Governance Report, and the Tokyo Stock Exchange explained how it came to be included in the report as follows.

The disclosure of corporate governance reports on advisors and advisory board members began in 2018, and Metrical added this item to its criteria of listed companies beginning with the disclosure of the same year. At the time, this item attracted a lot of attention, but it must be said that interest in this item has declined somewhat since then. At that time, this item was added to the Corporate Governance Report, and the Tokyo Stock Exchange explained how it came to be included in the report as follows.

Japan's Governance: Disclosure Regarding Ex-CEO Advisors

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: Parent Subsidiary Listing Investment Strategy Update

The acquisition of listed subsidiaries by their parent companies has been increasing, triggered by the liquidity standards in the prime market as a...

Metrical Inc

Japan's Governance: Revision of CG Code and Concurrently Serving as Outside Directors

With the expected revision of the Corporate Governance Code due to the market reclassification of TSE, the issue of concurrently serving as an...

Metrical Inc

Japan's Governance: Information Disclosure in English

The least disclosure in English is Yuho and CG reports. AGM/IR disclosures score shows a significant positive correlation with ROA and Tobin's Q....

Metrical Inc

Japan's Governance: Disclosure Regarding Ex-CEO Advisors

As information on ex-CEO advisors is statistically correlated with corporate profitability, further disclosure of this item is required. I hope...

Metrical Inc

Japan's Governance: Parent Subsidiary Listing Investment Strategy Update

The acquisition of listed subsidiaries by their parent companies has been increasing, triggered by the liquidity standards in the prime market as a...

Metrical Inc

Japan's Governance: Revision of CG Code and Concurrently Serving as Outside Directors

With the expected revision of the Corporate Governance Code due to the market reclassification of TSE, the issue of concurrently serving as an...

Metrical Inc

Japan's Governance: Social and Familiar Issues

When a company considers social issues, it is important to think about whether people will suffer from it in the workplace and all aspects of...

Metrical Inc

Japan's Governance: Information Disclosure in English

The least disclosure in English is Yuho and CG reports. AGM/IR disclosures score shows a significant positive correlation with ROA and Tobin's Q....

Metrical Inc

Japan's Governance: Disclosure Regarding Ex-CEO Advisors

As information on ex-CEO advisors is statistically correlated with corporate profitability, further disclosure of this item is required. I hope...

Metrical Inc