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.

Adopting DOE Is Step Forward, but Explanation Needed to Step into Strategic Allocation of Cash Flow

Determine Whether Shareholder Return Is a Temporary Measure or a Shift to Value-Creating Management

What Is Needed for More Engagement to Be Effective Is to Reduce Policy Shareholdings

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

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

Increasing Profitability to Gain Support from Overseas Investors Is a Condition for Higher Valuation

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

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Even with the 9% increase in share repurchases, the high level of cash on hand will likely be further built up, given the increase in cash flow.</li>
<li>Companies that have increased their valuations over the past year have further increased their valuations by growing their traditionally high valuations and ROE and ROA.</li>
<li>Cash allocation is a major challenge for all companies. Many companies have a payout ratio of 30%, and they have too much cash on hand relative to sales.</li>
</ul>


Even with the 9% increase in share repurchases, the high level of cash on hand will likely be further built up, given the increase in cash flow.
Companies that have increased their valuations over the past year have further increased their valuations by growing their traditionally high valuations and ROE and ROA.
Cash allocation is a major challenge for all companies. Many companies have a payout ratio of 30%, and they have too much cash on hand relative to sales.


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

TSE Tokyo Price Index TOPIX

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