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: Major Shareholder Factor

Japan's Governance: Update on the ％ of Independent Outside Directors

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<p>An analysis of a company's corporate governance practices and value-creating performance is critical to improving the effectiveness of engagement and stewardship. By examining the metrical board practices (board corporate governance guidelines, practices, and structure) and specific actions (actual corporate behavior) separately, we seek to identify statistically significant correlations between the three financial performance measures (ROE, ROA, and Tobin's Q) for each, i.e., board practices and actions, respectively. In other words, we are trying to find statistically significant correlations between the three financial performance indicators (ROE, ROA, and Tobin's Q) for each board practice and action. This is because, since the introduction of the Corporate Governance Code, there has been some improvement in the activities of the Board of Directors. However, assuming that one of the important goals of a company is value creation, it is very important to regularly analyze whether such improvements (specifically, what kind of improvements) lead to value creation in order to improve the effectiveness of engagement and stewardship. In this article, we will focus on an analysis of the performance of companies where independent outside directors make up the majority of the board of directors, compared to the universe as a whole.</p>

An analysis of a company's corporate governance practices and value-creating performance is critical to improving the effectiveness of engagement and stewardship. By examining the metrical board practices (board corporate governance guidelines, practices, and structure) and specific actions (actual corporate behavior) separately, we seek to identify statistically significant correlations between the three financial performance measures (ROE, ROA, and Tobin's Q) for each, i.e., board practices and actions, respectively. In other words, we are trying to find statistically significant correlations between the three financial performance indicators (ROE, ROA, and Tobin's Q) for each board practice and action. This is because, since the introduction of the Corporate Governance Code, there has been some improvement in the activities of the Board of Directors. However, assuming that one of the important goals of a company is value creation, it is very important to regularly analyze whether such improvements (specifically, what kind of improvements) lead to value creation in order to improve the effectiveness of engagement and stewardship. In this article, we will focus on an analysis of the performance of companies where independent outside directors make up the majority of the board of directors, compared to the universe as a whole.

Japan's Governance: Performance of Companies with a Majority of INEDs on the Board

TSE Tokyo Price Index TOPIX

Japan's Governance: Performance of Companies with a Majority of INEDs on the Board