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.

What's Solution for TSE Growth Market, Where IPOs Became the Goal and Lost Growth Due to Burnout?

The Effect of the TSE Requesting an Improvement Plan from a Company with a P/B Below 1x Is....

Shouldn't Shareholders Raise Voice for a Company that Is Building up Cash While Its ROE Is Sluggish?

Comparability of Disclosures Between Companies Will Enhance Content of Sustainability Information

Maybe There Are Many Companies in Japan that Have the Resources but Neglect Efforts to Increase ROA

Companies with High ROA Have High Potential for Corporate Governance and Further ROA Improvement

Different Criteria for Exercising Voting Rights for Overseas and Domestic Institutional Investors

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>If TSE were to require companies with low P/Bs to disclose improvement measures, more companies are likely to take immediate action to increase shareholder returns.</li>
<li>Reducing equity capital is effective in raising ROE, but simply draining cash accumulated from the past through shareholder returns will not lead to long-term stock price outperformance.</li>
<li>Among the components of ROE, ROA improvement is required rather than immediate increase in financial leverage. Companies should disclose their more detailed plans to increase ROA over the medium term.</li>
</ul>


If TSE were to require companies with low P/Bs to disclose improvement measures, more companies are likely to take immediate action to increase shareholder returns.
Reducing equity capital is effective in raising ROE, but simply draining cash accumulated from the past through shareholder returns will not lead to long-term stock price outperformance.
Among the components of ROE, ROA improvement is required rather than immediate increase in financial leverage. Companies should disclose their more detailed plans to increase ROA over the medium term.


Concrete Measures to Raise ROA Are Needed to Achieve Medium-Term Stock Price Outperformance

TSE Tokyo Price Index TOPIX

Concrete Measures to Raise ROA Are Needed to Achieve Medium-Term Stock Price Outperformance