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.

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

Solving the Issue of Increasing Trading Liquidity in Japanese Stocks Is More Than Analyst Coverage..

Japan's Governance: Takeover Defense Measures and Foreign Shareholder Ratio

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

Shareholder Returns Should Be Examined on a Cash Basis, Not on a Net Profit Basis

A Change in Manager's Mindset that Has Begun Will Lower the Investment Risk for Activist Investors

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Overseas investors tend to invest in companies with large market capitalization and high profitability, resulting in higher stock price valuations. They also tend to avoid investing in listed subsidiaries.</li>
<li>Since companies with over 20% foreign ownership show superior board practices, it’s reasonable to assume that board practices improve as foreign ownership increases and the influence of overseas investors increases.</li>
<li>Companies with more than 30% foreign ownership have many items that generally show excellent values in Key Actions. However, all companies still face challenges in cash allocation.</li>
</ul>


Overseas investors tend to invest in companies with large market capitalization and high profitability, resulting in higher stock price valuations. They also tend to avoid investing in listed subsidiaries.
Since companies with over 20% foreign ownership show superior board practices, it’s reasonable to assume that board practices improve as foreign ownership increases and the influence of overseas investors increases.
Companies with more than 30% foreign ownership have many items that generally show excellent values in Key Actions. However, all companies still face challenges in cash allocation.


Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings

TSE Tokyo Price Index TOPIX

Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings