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.

What Can Be Done to Make the Independence of the Committee Function that Investors Have Questioned?

CG Watch, Which Made Great Strides Will Be Tested Next Time for Substantial Governance Improvements

Size of Market Capitalization Will Make a Difference in Corporate Governance and Value Creation

Interesting that the Buy Parent Company + Sell Subsidiary Trade Does Not Work

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

"Requests" Through Overseas Investor Engagement Will Continue to Be More Effective than TSE Requests

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Although there's range in the cost of capital, a sense of level is shared among investors, so even if a company estimates lower, it will be found to be incorrect.</li>
<li>The essential problem isn't scrutiny of the cost of capital, but rather that many companies produce low returns. Investors are skeptical that companies produce returns above their cost of capital.</li>
<li>If stock prices do not rise, investors will continue to demand that companies improve their management, attributing this to the negative gap between the cost of capital and return.</li>
</ul>


Although there's range in the cost of capital, a sense of level is shared among investors, so even if a company estimates lower, it will be found to be incorrect.
The essential problem isn't scrutiny of the cost of capital, but rather that many companies produce low returns. Investors are skeptical that companies produce returns above their cost of capital.
If stock prices do not rise, investors will continue to demand that companies improve their management, attributing this to the negative gap between the cost of capital and return.


Investors Expect a Feasible Management Strategy Rather than an Accurate Cost of Capital

TSE Tokyo Price Index TOPIX

Investors Expect a Feasible Management Strategy Rather than an Accurate Cost of Capital