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.

Not Promptly Retiring Treasury Stock Has Increased the Market Cap of Japanese-Style Calculations

Shareholder Benefits to Return Amid Rise in Foreign Ownership and Dissolution of Cross-Shareholdings

Growth Policy Score Improved with the Request to Raise P/B, but Other Criteria Are in the Process

Improvements Have Expired in Criteria Related to the 2019 Corporate Governance Code Revision

Reducing Cross-Held Shares Is Precisely What Is Needed to Promote Management Change

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Stock sale allows brokers to pass on to the company the attraction of being able to diversify its shareholders, and the cross-shareholding sales scheme allows them to obtain higher commissions.</li>
<li>One of the solutions that companies have come up with in the absence of improved return on capital is to reduce their policy shareholdings.</li>
<li>The use of share repurchases to buy back cross-shareholdings is a very good way to improve return on capital because it also reduces the amount of cash on hand.</li>
</ul>


Stock sale allows brokers to pass on to the company the attraction of being able to diversify its shareholders, and the cross-shareholding sales scheme allows them to obtain higher commissions.
One of the solutions that companies have come up with in the absence of improved return on capital is to reduce their policy shareholdings.
The use of share repurchases to buy back cross-shareholdings is a very good way to improve return on capital because it also reduces the amount of cash on hand.


Companies with More Cash on Hand Are Expected to Use Cross-Shareholdings to Repurchase Shares

TSE Tokyo Price Index TOPIX

Companies with More Cash on Hand Are Expected to Use Cross-Shareholdings to Repurchase Shares