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.

Shareholder Benefits to Return Amid Rise in Foreign Ownership and Dissolution of Cross-Shareholdings

Companies Should Consider All Options, Not Just Maintaining Their Listing

Companies with More Cash on Hand Are Expected to Use Cross-Shareholdings to Repurchase Shares

Reducing Cross-Held Shares Is Precisely What Is Needed to Promote Management Change

Activist Investors with Increased AUM Will Also Likely Target Larger Companies for Investment

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The fact that few companies promptly retire treasury stock is the reason for the large gap between market capitalization including treasury stock and market capitalization calculated without including treasury stock.</li>
<li>It's odd that EV/EBITDA of a company will be smaller after cancelling treasury shares than before, but this shouldn't be too much trouble for institutional investors who analyze it closely.</li>
<li>Although this gap may widen for more companies as more cross-shareholdings will be bought back with treasury stock, the increase in share repurchases is a favorable development.</li>
</ul>


The fact that few companies promptly retire treasury stock is the reason for the large gap between market capitalization including treasury stock and market capitalization calculated without including treasury stock.
It's odd that EV/EBITDA of a company will be smaller after cancelling treasury shares than before, but this shouldn't be too much trouble for institutional investors who analyze it closely.
Although this gap may widen for more companies as more cross-shareholdings will be bought back with treasury stock, the increase in share repurchases is a favorable development.


Not Promptly Retiring Treasury Stock Has Increased the Market Cap of Japanese-Style Calculations

TSE Tokyo Price Index TOPIX

Not Promptly Retiring Treasury Stock Has Increased the Market Cap of Japanese-Style Calculations