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.

Parent-Subsidiary Listings Are a Microcosm of Japanese Stocks: Change to Value-Creation Is Long Away

TSE's Request for Disclosure About Parent-Subsidiary Listings Is an Improvement, Not a Solution

ROE and Valuations of Japanese Stocks Will Improve Through Dissolution of Parent-Subsidiary Listings

Will Parent Company Valuations Remain Undervalued Until the Parent-Subsidiary Listing Is Dissolved?

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The most significant reason for decreasing parent-subsidiary listings is the presence of overseas investors who have long pointed out the problems with this issue. This TSE's request will support them.</li>
<li>The issue of parent-subsidiary listing is whether the listed parent should incorporate the profitability of equity-method affiliate/listed subsidiary to enhance its profitability, or effectively use its assets by divesting them.</li>
<li>If extending to equity-method affiliates, there are many companies that haven't made progress in reviewing their business portfolios, and this is where the fundamental issue of ROE not increasing lies.</li>
</ul>


The most significant reason for decreasing parent-subsidiary listings is the presence of overseas investors who have long pointed out the problems with this issue. This TSE's request will support them.
The issue of parent-subsidiary listing is whether the listed parent should incorporate the profitability of equity-method affiliate/listed subsidiary to enhance its profitability, or effectively use its assets by divesting them.
If extending to equity-method affiliates, there are many companies that haven't made progress in reviewing their business portfolios, and this is where the fundamental issue of ROE not increasing lies.


Parent-Subsidiary Listing Issues Lead to Reasons Why ROE Is Not Increasing

TSE Tokyo Price Index TOPIX

Parent-Subsidiary Listing Issues Lead to Reasons Why ROE Is Not Increasing