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.

Since Cash on Hand Will Not Decrease in FY2024, Shareholder Returns Remain a Hot Topic

Many Companies Still Consider Engagement with Investors to Be Someone Else's Business

Companies with Low ROEs Have Corporate Governance Practices that Only Make It So

TSE Should Aim for a Quality Market Rather than a Market Where Listed Companies Can Easily Inhabit

TSE's "Request" Is a Catalyst for a Final Decision on the Foundation of Years of Engagement

A Change in Manager's Mindset that Has Begun Will Lower the Investment Risk for Activist Investors

Few Companies Have Started to Move Yet, but Can They Raise R & D Investment to Regain Pricing Power?

Challenges in Using Cash, Even in Companies with 30%+ Female Board Members, with Excellent Practices

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>In addition to too much cash on hand to begin with, ROE is expected to continue to grow at a sluggish pace, as shareholder returns are less than profit growth.</li>
<li>Given that we expect more companies to have stock price, P/B, and ROE on the agenda for the June AGM, more companies are expected to announce increases in shareholder returns.</li>
<li>However, ROE is unlikely to increase significantly. Shareholder returns are certainly too small, but a more serious problem is the inability to find growth investment opportunities.</li>
</ul>


In addition to too much cash on hand to begin with, ROE is expected to continue to grow at a sluggish pace, as shareholder returns are less than profit growth.
Given that we expect more companies to have stock price, P/B, and ROE on the agenda for the June AGM, more companies are expected to announce increases in shareholder returns.
However, ROE is unlikely to increase significantly. Shareholder returns are certainly too small, but a more serious problem is the inability to find growth investment opportunities.


Shareholder Returns Will Increase over June AGM, but Will Companies Hold up with Sluggish ROE?

TSE Tokyo Price Index TOPIX

Shareholder Returns Will Increase over June AGM, but Will Companies Hold up with Sluggish ROE?