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.

Valuations Will Rise when the Management Changes To "Maximizing Shareholder Interest"

ROE Isn't Rising Because Managers Don't Think of the Value of the Company and Meaning of the Listing

Prime Market Is Still the Market with the Most Listed Companies Even After 171 Companies Are Removed

Amid Slow ROE Improvement, Calls for Stronger Shareholder Returns Will Become Even Stronger

Share Buyback Are Likely Due to Reduction of Shares in Retirement Benefit Trusts and Policy Holdings

Do Not Miss the Movement of Deemed Cross-Held Shares, Which Are the Last Resort of Cross-Held Shares

Companies with High Frequency of Share Retirements Tend to Have a High Awareness of Cash Allocation

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>TSE market reorganization triggered the reduction of policy shareholdings, and now the test will be whether policy shareholdings can be reduced in order to raise ROE, which is sluggishly growing.</li>
<li>Companies that maintain excessive policy shareholdings should provide a rational explanation of their holding policies and the reasons for each shareholding in their corporate governance reports and annual securities reports.</li>
<li>Improving OP Margin, which is highly correlated with ROE, is a shortcut to raising ROE. Policy shareholdings, should not be accumulated in cash on hand, but used for profitable investments.</li>
</ul>


TSE market reorganization triggered the reduction of policy shareholdings, and now the test will be whether policy shareholdings can be reduced in order to raise ROE, which is sluggishly growing.
Companies that maintain excessive policy shareholdings should provide a rational explanation of their holding policies and the reasons for each shareholding in their corporate governance reports and annual securities reports.
Improving OP Margin, which is highly correlated with ROE, is a shortcut to raising ROE. Policy shareholdings, should not be accumulated in cash on hand, but used for profitable investments.


Policy Shareholdings, if Reduced, Should Be Used for Profitable Investments

TSE Tokyo Price Index TOPIX

Policy Shareholdings, if Reduced, Should Be Used for Profitable Investments