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.

Governance Improvement in 2023 Was Modest but Saved by a Rise in % Woman Board Members

Investors Want to See a Shift in Management to Create Value, Not Just Meet Government Target Numbers

Whatever the Proxy Voting Advisor's Criteria, It Is How Investors Actually Conduct Themselves

Corporate Governance in Japan Is Improving, but Has yet to Take Steps to Create Value

For Increasing TOBs and MBOs, Managers Should Be Aware of Listing Costs and PE Market Should Expand

Investors Do Not Want to See A "P/B Improvement Plan" That Follows a Template

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Over the past year, Tobin's Q increased slightly for listed companies as a whole; companies that increased their ROE and ROA increased their Tobin's Q. vice versa.</li>
<li>Companies that originally had high stock valuations and high ROE and ROA increased their valuations by becoming more profitable. Raising ROE and ROA is the key to higher valuations.</li>
<li>For companies with low valuations, it wasn't easy to raise ROE and ROA solely at TSE's request. Some of companies whose stock valuations have fallen will go private through MBOs.</li>
</ul>


Over the past year, Tobin's Q increased slightly for listed companies as a whole; companies that increased their ROE and ROA increased their Tobin's Q. vice versa.
Companies that originally had high stock valuations and high ROE and ROA increased their valuations by becoming more profitable. Raising ROE and ROA is the key to higher valuations.
For companies with low valuations, it wasn't easy to raise ROE and ROA solely at TSE's request. Some of companies whose stock valuations have fallen will go private through MBOs.


Higher ROE & ROA Are Keys to Higher Valuation, but This Wasn't Easy for Companies with Low Valuation

TSE Tokyo Price Index TOPIX

Higher ROE & ROA Are Keys to Higher Valuation, but This Wasn't Easy for Companies with Low Valuation