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.

First Step in Engagement in Term of Listening to Overseas Investors Is Seeking Disclosure in English

Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings

The Good Case Companies Had More Opportunities to Reflect on Cost of Capital and Return on Capital

Will Disclosure for This P/B Rise Based on the Failure of Transitional Companies "Plan" Work?

New Index Distracts from Prime Market Issues While Providing Long/Short Opportunities for Investors

Having Ended Its Traditional Role, TOPIX Faces Several Challenges

TSE Should Aim for a Quality Market Rather than a Market Where Listed Companies Can Easily Inhabit

From the Reality of 4%, Mandatory English Disclosure of Annual Securities Reports Is a High Hurdle

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>TOPIX-Type passive funds have the challenges of buying stocks that aren't of high quality and of not providing sufficient engagement. JPX Prime 150 is expected to resolve these issues.</li>
<li>Some believe that JPX Prime 150, a market capitalization-weighted index, shows little difference in performance from TOPIX. However, more careful engagement will contribute to value creation in the long run.</li>
<li>The continued creation of passive funds linked to the JPX Prime 150 Index is expected to further highlight high quality companies.</li>
</ul>


TOPIX-Type passive funds have the challenges of buying stocks that aren't of high quality and of not providing sufficient engagement. JPX Prime 150 is expected to resolve these issues.
Some believe that JPX Prime 150, a market capitalization-weighted index, shows little difference in performance from TOPIX. However, more careful engagement will contribute to value creation in the long run.
The continued creation of passive funds linked to the JPX Prime 150 Index is expected to further highlight high quality companies.


Continued Creation of JPX Prime 150-Type Passive Funds Will Help Solve TOPIX Challenges

TSE Tokyo Price Index TOPIX

Continued Creation of JPX Prime 150-Type Passive Funds Will Help Solve TOPIX Challenges