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.

Japan's Governance: How Far Corporate Governance Has Progressed in 2021? (4) - Change in ROA and ROE

Japan's Governance: How Far Has Corporate Governance Improved in 2021 (5) - Change in ％ of INEDs

Japan's Governance: TSE Market Reclassification: Results of Selection of New Market Segments

Japan's Governance: What Kind of Firm Adopts Takeover Defenses? What Is the Stock Price Performance?

Japan's Governance: How Far Has Corporate Governance Progressed in 2021 (2)

Japan's Governance: How Far Has Corporate Governance Progressed in 2021? (1)

Japan's Governance: What's Behind the Underperformance of Companies with Takeover Defenses?

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>This article analyzes how changes in market capitalization correlate with changes in performance and corporate governance ratings.</li>
<li>Note that the % change in market cap as of December 2020 and December 2021 for 1,704 companies confirms a positive correlation that is more significant with ROA than ROE.</li>
<li>Companies that improved their Metrical score by 10 ppt or more increased their market capitalization the most, followed by companies that improved Metrical score by 5 ppt to 10 ppt.</li>
</ul>


This article analyzes how changes in market capitalization correlate with changes in performance and corporate governance ratings.
Note that the % change in market cap as of December 2020 and December 2021 for 1,704 companies confirms a positive correlation that is more significant with ROA than ROE.
Companies that improved their Metrical score by 10 ppt or more increased their market capitalization the most, followed by companies that improved Metrical score by 5 ppt to 10 ppt.


Japan's Governance: How Far Has Corporate Governance Progressed in 2021(3)

TSE Tokyo Price Index TOPIX

Japan's Governance: How Far Has Corporate Governance Progressed in 2021(3)