Daily BriefsESG

Daily Brief ESG: Not Which KPI Is Better and more

In today’s briefing:

  • Not Which KPI Is Better, but What Is Shared Between Investors and Managers to Achieve the Same Goal

Not Which KPI Is Better, but What Is Shared Between Investors and Managers to Achieve the Same Goal

By Aki Matsumoto

  • There is a gap between investors, who seek KPIs that reflect future cash flows and cost of capital to determine the prospects for corporate value, and the company.
  • Many companies aren’t able to manage investment and return by business, and under such conditions it is difficult to show future investments and growth prospects in a mid-term business plan.
  • Metrical’s analysis shows that simply increasing shareholder returns isn’t sufficient to raise market capitalization; growth policy and capital allocation policy must be systematically established as part of management policy.

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