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 Good Case Companies Had More Opportunities to Reflect on Cost of Capital and Return on Capital

Solving the Issue of Increasing Trading Liquidity in Japanese Stocks Is More Than Analyst Coverage..

Is the Rise in TOPIX Anticipating the Actual Rise in ROE+DOE?

ROE Trends Do Not Seem to Indicate a Significant Change in Management's Mindset?

A Market with a Low Average ROE Favors Valuations for Companies with More Reliable Cash Flow

To Raise ROE, Breaking Away from Familiar Relationships and Creating Tension in Management Is Key

Is the Deflationary Mindset of Managers Still Prevailing?

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>While many companies have disclosed enhanced shareholder returns, dividend payout ratio in 30% range and no increase, and 4% increase in total dividends from the previous year, is not enough.</li>
<li>Since DOE remains at just under 3% same as the previous year, few companies allocate enough cash to dividend to reduce Shareholder's Equity, and consequently ROE is expected to lower.</li>
<li>Cash on hand in September is at all-time high. Behind the ROE, which shows no sign of rising, is the psychology of managers who want to keep cash on hand.</li>
</ul>


While many companies have disclosed enhanced shareholder returns, dividend payout ratio in 30% range and no increase, and 4% increase in total dividends from the previous year, is not enough.
Since DOE remains at just under 3% same as the previous year, few companies allocate enough cash to dividend to reduce Shareholder's Equity, and consequently ROE is expected to lower.
Cash on hand in September is at all-time high. Behind the ROE, which shows no sign of rising, is the psychology of managers who want to keep cash on hand.


Is Japan's Culture the Psychology of Managers Who Prefer to Keep Cash on Hand over Higher ROE?

TSE Tokyo Price Index TOPIX

Is Japan's Culture the Psychology of Managers Who Prefer to Keep Cash on Hand over Higher ROE?