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.

Ways Should Be Explored to Make Companies More Effective in Disclosing Their Cost of Capital

Challenge Is to Simultaneously Reduce Cash on Hand and Achieve Profitability over Cost of Capital

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

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

Evaluate Not Only Board Practices, but Also Key Actions to See if They Are Leading to Value Creation

Rather, Listing Criteria for Prime Market Should Be Modified to the Original Concept of the Market

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The TSE is in a long-term battle to improve the quality of the prime market while maintaining lax listing standards that do not fit the prime market concept.</li>
<li>If passive funds move to JPX Prime 150 Index, which would increase the divergence between stock prices of high quality and low quality companies, it might motivate the companies more.</li>
<li>If there is little difference between performance of TOPIX and JPX Prime 150, the passive funds will be satisfied with this index, and the TOPIX engagement problem will be eliminated.</li>
</ul>


The TSE is in a long-term battle to improve the quality of the prime market while maintaining lax listing standards that do not fit the prime market concept.
If passive funds move to JPX Prime 150 Index, which would increase the divergence between stock prices of high quality and low quality companies, it might motivate the companies more.
If there is little difference between performance of TOPIX and JPX Prime 150, the passive funds will be satisfied with this index, and the TOPIX engagement problem will be eliminated.


Having Ended Its Traditional Role, TOPIX Faces Several Challenges

TSE Tokyo Price Index TOPIX

Having Ended Its Traditional Role, TOPIX Faces Several Challenges