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.

Slow Policy Shareholdings Reduction Is Similar Backdrop to Unclear Nomination Process for Directors

Reducing Cross-Shareholdings Returns Companies to Basics of Sustained Growth in Shareholder Returns

Facing the Fundamental Issue that Policy Shareholdings Have Delayed Management Improvement Is Key

Key to Look Carefully to See if What Is Disclosed Is Consistent with Profitability and Other Results

A New Type Of "Deemed Shareholding" Has Emerged!

Content of Disclosures Is Important, but the Focus Has Shifted to Whether the Goals Can Be Achieved

Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement

What Investors and Companies Should Do to Make Engagement More Effective ....

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The increase in foreign ownership and the decline in cross-shareholdings have encouraged management reform. In order for engagement to be effective, it is essential to further reduce cross shareholdings.</li>
<li>Reasonable explanation of the reasons for such transfers as changes in the purpose of policy shareholding or contributions to retirement benefit trust must be provided in the annual securities report.</li>
<li>Rising stock prices increase the value of policy shareholdings. To accelerate the reduction of policy shareholdings, numerical targets should be published, such as by setting milestones.</li>
</ul>


The increase in foreign ownership and the decline in cross-shareholdings have encouraged management reform. In order for engagement to be effective, it is essential to further reduce cross shareholdings.
Reasonable explanation of the reasons for such transfers as changes in the purpose of policy shareholding or contributions to retirement benefit trust must be provided in the annual securities report.
Rising stock prices increase the value of policy shareholdings. To accelerate the reduction of policy shareholdings, numerical targets should be published, such as by setting milestones.


Amidst Changes in Purpose of Policy Shareholdings, We Should Note Whether They Are Really Decreasing

TSE Tokyo Price Index TOPIX

Amidst Changes in Purpose of Policy Shareholdings, We Should Note Whether They Are Really Decreasing