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.

Companies Have Begun to Be Aware of Cash Flow, but the Reality Is that It Doesn't Produce Results

Management Mindset of Believing that Company Growth Is Not the Main Objective Is Hindering Growth

Market Shakeout Should Come with Business Portfolio Restructuring Especially for Small-Cap Companies

Shareholder Activism Plays a Significant Role in Companies that Are Slow to Change

The Situation Is Different for REITs that Rely on Capital Increase, Despite the Same Low P/B Issue

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>In addition to many manufacturing companies that are sensitive to economic cycles, TSE is also characterized by many companies with sluggish operating cash flow growth.</li>
<li>Low interest rates in Japan can also be a factor in high volatility. As the volatility of low interest rates increases, corporate value volatility is likely to increase as well.</li>
<li>Some overseas investors pay attention to the equity spread over JGB yields. As the risk of rising interest rates in Japan increases, they are likely to unwind their futures positions.</li>
</ul>


In addition to many manufacturing companies that are sensitive to economic cycles, TSE is also characterized by many companies with sluggish operating cash flow growth.
Low interest rates in Japan can also be a factor in high volatility. As the volatility of low interest rates increases, corporate value volatility is likely to increase as well.
Some overseas investors pay attention to the equity spread over JGB yields. As the risk of rising interest rates in Japan increases, they are likely to unwind their futures positions.


Is the High Volatility of Japanese Equities Only Due to Their Small Market Capitalization?

TSE Tokyo Price Index TOPIX

Is the High Volatility of Japanese Equities Only Due to Their Small Market Capitalization?