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 Problem Is that Companies that Don't Want to Do Disclosure in English Are Listed on Prime Market

Prime Market Is Still the Market with the Most Listed Companies Even After 171 Companies Are Removed

Preparation in Advance for In-Depth Discussions Is Important for Both Investors and Managers

Mismatch Between Documents Needed by Foreign Investors and Those Translated in English by Companies

Earlier Timing of Disclosure in English May Create Another Mismatch with Investor Demand

In-Depth Approach Is Necessary for Companies Seeking Further Communication with Overseas Investors

Should the 2022 Annual Meeting of Shareholders Be Regarded as Constant Progress?

Changes in Voting Practices of Japan's Major Investment Managements Will Take Time to Take Hold

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Overseas investors feel that the disclosure of English documents by Japanese companies is slow-paced and the majority of overseas investors are not satisfied with the English disclosure.</li>
<li>Without sufficient disclosures in English, it is impossible to conduct a detailed analysis of the portfolio company. This also casts a shadow over engagement.</li>
<li>Given the narrowing coverage of sell-side analysts, companies should proactively disclose English-language materials at the earliest possible time. For long-term investors, English-language disclosures such as annual securities reports are also useful.</li>
</ul>


Overseas investors feel that the disclosure of English documents by Japanese companies is slow-paced and the majority of overseas investors are not satisfied with the English disclosure.
Without sufficient disclosures in English, it is impossible to conduct a detailed analysis of the portfolio company. This also casts a shadow over engagement.
Given the narrowing coverage of sell-side analysts, companies should proactively disclose English-language materials at the earliest possible time. For long-term investors, English-language disclosures such as annual securities reports are also useful.


Gap in Response to Disclosures in English Compared to the Growing Presence of Overseas Investors

TSE Tokyo Price Index TOPIX

Gap in Response to Disclosures in English Compared to the Growing Presence of Overseas Investors