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: Parent-Subsidiary Listing Dissolution and ROIC

Japan's Governance: Convertible Bonds Issue

Japan's Governance: Parent-Subsidiary Listing and Investment Strategy

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

NTT (Nippon Telegraph & Telephone) (9432 JP)

<p>In my previous article, I discussed the investment strategy of parent-subsidiary listing from the perspective of corporate governance, and Metrical covered this strategy in August last year. The parent company, NTT, has long been required by investors to present a robust growth strategy in terms of cash allocation and shareholder returns, so from NTT's perspective, making NTT DOCOMO a wholly owned subsidiary was a viable option. In the sense that the TOB was a success, the investment strategy worked, and researching the situation of the parent company confirmed that the investment strategy had a better chance of success. At the same time, however, I could guess that the integration of subsidiaries would not be easy for a former public company that had followed the path of divestiture and privatization, so I was somewhat surprised when the TOB was announced.</p>

In my previous article, I discussed the investment strategy of parent-subsidiary listing from the perspective of corporate governance, and Metrical covered this strategy in August last year. The parent company, NTT, has long been required by investors to present a robust growth strategy in terms of cash allocation and shareholder returns, so from NTT's perspective, making NTT DOCOMO a wholly owned subsidiary was a viable option. In the sense that the TOB was a success, the investment strategy worked, and researching the situation of the parent company confirmed that the investment strategy had a better chance of success. At the same time, however, I could guess that the integration of subsidiaries would not be easy for a former public company that had followed the path of divestiture and privatization, so I was somewhat surprised when the TOB was announced.

Japan’s Governance: NTT DoCoMo TOB and Aftermath