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.

Only Seriousness of Shareholder Return Can Judge Change in Management in 1 Year After TSE's Request

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

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

Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings

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

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

A Market with Small Value Stocks and Investment Opportunities Due to Delisting, Although Taking Time

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Companies with larger market capitalizations tend to have higher profitability and valuations, and those companies have higher foreign ownership.</li>
<li>Given that board practices improved and that valuations, highly correlated with foreign ownership, are higher for companies with larger market capitalizations, this can be due to engagement of overseas investors.</li>
<li>If this hypothesis is correct, the gap between the top and bottom market capitalization companies will widen further as it takes a certain time for engagement to pay off.</li>
</ul>


Companies with larger market capitalizations tend to have higher profitability and valuations, and those companies have higher foreign ownership.
Given that board practices improved and that valuations, highly correlated with foreign ownership, are higher for companies with larger market capitalizations, this can be due to engagement of overseas investors.
If this hypothesis is correct, the gap between the top and bottom market capitalization companies will widen further as it takes a certain time for engagement to pay off.


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

TSE Tokyo Price Index TOPIX

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