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.

<p>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.</p>

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

<p style="text-align: left;">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."</p>

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

<p>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.</p>

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

<p>One of the problems of corporate governance in Japanese companies is that of policy stock holding. This problem is a local issue unique to Japanese companies. For a long time, cross-shareholdings were regarded as a core issue in the corporate governance of Japanese companies, but in the last fiscal year, there seems to have been some movement. The amount of cross-shareholdings and changes from the previous year can be found in the text of the annual securities report (Yuho). Based on this disclosure information, I would like to examine the changes in policy stock holdings as of the end of July 2021 for the 1,729 companies in the Metrical Universe. The table below shows the top 30 companies with a net decrease in policy stock holdings compared to the previous year, indicating that many of them have slightly more policy stocks than total assets and lower ROA (actual).</p>

One of the problems of corporate governance in Japanese companies is that of policy stock holding. This problem is a local issue unique to Japanese companies. For a long time, cross-shareholdings were regarded as a core issue in the corporate governance of Japanese companies, but in the last fiscal year, there seems to have been some movement. The amount of cross-shareholdings and changes from the previous year can be found in the text of the annual securities report (Yuho). Based on this disclosure information, I would like to examine the changes in policy stock holdings as of the end of July 2021 for the 1,729 companies in the Metrical Universe. The table below shows the top 30 companies with a net decrease in policy stock holdings compared to the previous year, indicating that many of them have slightly more policy stocks than total assets and lower ROA (actual).

Japan's Governance: Change in Policy Shareholdings (July 2021)

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<p>On our next Webinar, we welcome Insight Provider <a href="https://www.smartkarma.com/profiles/aki-matsumoto" target="_blank" data-smartkarma-citation="accounts:20673" rel="noopener">Aki Matsumoto</a> who will speak about the state of corporate governance in Japan. We will address whether corporate governance in the country is improving, and how it is linked to corporate profits and stock prices - something that not only investors, but also managers want to learn more about.</p><div><div><h3>The webinar will be hosted on Wednesday, 4 August 2021, 17:00 SGT/HKT.</h3></div></div><div><div><div class="content-highlight"><h2><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=83094407087" target="_blank" rel="noopener">Register for the Webinar here</a></h2></div></div></div><p>Aki Matsumoto is Executive Director and Co-Head of CG Research at Metrical Inc, an investment research and consulting firm focusing on corporate governance in Japan. He has been involved in investment management and the developing of financial products since 1984. His career started from Nikko Securities and he worked as an investment professional in Mizuho Securities and Sumitomo Mitsui Asset Management. Over the past six years, Metrical has analysed and rated the corporate governance criteria of 1,700 Japanese companies with a market capitalisation of JPY 10 billion or more.</p>

On our next Webinar, we welcome Insight Provider Aki Matsumoto who will speak about the state of corporate governance in Japan. We will address whether corporate governance in the country is improving, and how it is linked to corporate profits and stock prices - something that not only investors, but also managers want to learn more about.The webinar will be hosted on Wednesday, 4 August 2021, 17:00 SGT/HKT.Register for the Webinar hereAki Matsumoto is Executive Director and Co-Head of CG Research at Metrical Inc, an investment research and consulting firm focusing on corporate governance in Japan. He has been involved in investment management and the developing of financial products since 1984. His career started from Nikko Securities and he worked as an investment professional in Mizuho Securities and Sumitomo Mitsui Asset Management. Over the past six years, Metrical has analysed and rated the corporate governance criteria of 1,700 Japanese companies with a market capitalisation of JPY 10 billion or more.

Smartkarma Webinar | Corporate Governance and Value Creation in Japan

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: 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: Change in Policy Shareholdings (July 2021)

Companies with a net decrease in the amount of policy stocks holdings compared to the previous year have relatively higher policy stock holdings...

Metrical Inc

Smartkarma Webinar | Corporate Governance and Value Creation in Japan

On 4 August, 5pm SGT, join us for a presentation and discussion with Aki Matsumoto, who will speak about the state of corporate governance in Japan...

Smartkarma Research

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

Japan's Governance: Change in Policy Shareholdings (July 2021)

Companies with a net decrease in the amount of policy stocks holdings compared to the previous year have relatively higher policy stock holdings...

Metrical Inc

Smartkarma Webinar | Corporate Governance and Value Creation in Japan

On 4 August, 5pm SGT, join us for a presentation and discussion with Aki Matsumoto, who will speak about the state of corporate governance in Japan...

Smartkarma Research