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.

Higher Valuations Require Increased Return on Capital to Attract the Attention of Overseas Investors

The Key to Higher ROE Is Higher Profit Margins and Faster Efforts by Smaller Companies

Adopting DOE Is Step Forward, but Explanation Needed to Step into Strategic Allocation of Cash Flow

Why Are Companies with High Corporate Governance Practices Ratings More Profitable?

Engagement Keeps Widening the Profitability Gap Between the Top and Bottom Companies in Market Cap

Isn't It Not Strong Enough to Raise ROE by Higher Profit Margin Due to Escape from Deflation?

Improved Profitability to Attract Overseas Investors Key to Raise Valuation Even After TSE's Request

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Companies in the 0% to 8% ROE group have low stock valuations and are in trouble because they are unable to step into value-creating management.</li>
<li>Companies in this group, which includes many prime market listed companies, have done what is required by Corporate Governance Code, but could not take action to increase their ROE.</li>
<li>The lack of significant differences in corporate governance practices for group with ROEs above 10% is due to foreign ownership not being significantly differentiated from other groups.</li>
</ul>


Companies in the 0% to 8% ROE group have low stock valuations and are in trouble because they are unable to step into value-creating management.
Companies in this group, which includes many prime market listed companies, have done what is required by Corporate Governance Code, but could not take action to increase their ROE.
The lack of significant differences in corporate governance practices for group with ROEs above 10% is due to foreign ownership not being significantly differentiated from other groups.


Companies with High Corporate Governance Practices Have High ROE, but Not Vice Versa

TSE Tokyo Price Index TOPIX

Companies with High Corporate Governance Practices Have High ROE, but Not Vice Versa