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.

Meaningful If "P/B Below 1x" Is a Change of Mindset that Makes Managers Decide to Take an MBO

Fewer TOPIX Remaining Companies Show the Difficulty of Producing Convincing Disclosures

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

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

Expanding Nominal Profits from Shift from Deflation Rather than P/B Is the Driver of Stock Prices

Growth in Corporate Value over Longer Term Is More Important than Meeting Immediate Listing Criteria

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>While 4% of the number of companies mentioned in annual securities reports regarding P/B, half of companies have P/B of below 1x, which suggests managers still lack sense of urgency.</li>
<li>Many companies that mention P/B in their annual securities reports rely on share repurchases, and their presentation of strategies to increase cash flow is weak.</li>
<li>Clearly stating the cost of capital will lead to more appropriate ROE and ROIC targets and disclosure of specific measures to achieve them.</li>
</ul>


While 4% of the number of companies mentioned in annual securities reports regarding P/B, half of companies have P/B of below 1x, which suggests managers still lack sense of urgency.
Many companies that mention P/B in their annual securities reports rely on share repurchases, and their presentation of strategies to increase cash flow is weak.
Clearly stating the cost of capital will lead to more appropriate ROE and ROIC targets and disclosure of specific measures to achieve them.


The First Thing Managers Should Do Is Disclose Their Cost of Capital and Their Company's Return

TSE Tokyo Price Index TOPIX

The First Thing Managers Should Do Is Disclose Their Cost of Capital and Their Company's Return