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.

Reducing Policy Shareholdings May Be a Sign of Seriousness to Improve Management

Why Should Policy Shares Be Viewed as Including Deemed Shares Held?

What Investors and Companies Should Do to Make Engagement More Effective ....

What Is Needed for More Engagement to Be Effective Is to Reduce Policy Shareholdings

Determine Whether Shareholder Return Is a Temporary Measure or a Shift to Value-Creating Management

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Signs of change in companies that have improved their capital profitability and valuations can be seen in their policy shareholdings/total assets. </li>
<li>Companies with fewer policy shareholdings, as measured by (policy shareholdings + equity holdings)/total assets, tend to have the best values for valuation, ROE, and ROA, and vice versa.</li>
<li>To measure the seriousness of reducing cross-shareholdings, as long as the company has the voting right of cross-shareholdings in retirement benefit trust, the deemed shares should be included in cross-shareholdings.</li>
</ul>


Signs of change in companies that have improved their capital profitability and valuations can be seen in their policy shareholdings/total assets. 
Companies with fewer policy shareholdings, as measured by (policy shareholdings + equity holdings)/total assets, tend to have the best values for valuation, ROE, and ROA, and vice versa.
To measure the seriousness of reducing cross-shareholdings, as long as the company has the voting right of cross-shareholdings in retirement benefit trust, the deemed shares should be included in cross-shareholdings.


Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement

TSE Tokyo Price Index TOPIX

Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement