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.

Capital Efficiency Is the Topic of the June AGM, While What Is Happening to Passive Fund Voting?

TSE Should Shift Its Business Model from Growing Number of Listed Companies to Expanding Market Cap

Rather More Proposals that Have to Be Considered for or Against on a Qualitative, Case-By-Case Basis

Modest ROE Growth Expected to Increase Shareholder Proposals for Higher Shareholder Returns

Japan's Governance: Considerations Regarding the Percentage of Foreign Shareholders

Japan's Governance: What Are the Effective Factors for Stock Returns?

Let Fujitec's Case Be a Lesson to Companies and Investors in Japan

Passive Funds, Silent Shareholders, Are a Barrier to Corporate Governance

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The most important factor in increasing stock valuations is overseas investors, and a clue can be found in exploring what kind of companies they tend to invest in.</li>
<li>It is a company with high cash holdings and a high growth policy score, i.e., a company that generates ample cash flow. This should be considered a necessary condition.</li>
<li>As foreign ownership increases, shareholder returns such as share buybacks will also be implemented to review cash allocations and improve board practices, so these can be considered byproducts.</li>
</ul>


The most important factor in increasing stock valuations is overseas investors, and a clue can be found in exploring what kind of companies they tend to invest in.
It is a company with high cash holdings and a high growth policy score, i.e., a company that generates ample cash flow. This should be considered a necessary condition.
As foreign ownership increases, shareholder returns such as share buybacks will also be implemented to review cash allocations and improve board practices, so these can be considered byproducts.


Cash Flow Return Is Necessary Condition for Higher Stock Valuations; Shareholder Return Is Byproduct

TSE Tokyo Price Index TOPIX

Cash Flow Return Is Necessary Condition for Higher Stock Valuations; Shareholder Return Is Byproduct