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.

Cash on Hand Has Built up to a Level Where Small Shareholder Returns Are No Longer Sufficient

Challenge Is to Raise Governance and Return on Capital for More Companies Beyond Matching Numbers

The Key to Higher ROE Is Higher Profit Margins and Faster Efforts by Smaller Companies

What Lies Behind the Inability to Come up with Flexible Cash Usage Is

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Overseas investors tend to invest in companies with larger market capitalization and higher profitability, and companies with higher foreign shareholdings have significantly better values in corporate governance.</li>
<li>Hitachi has been one of the most successful companies in this area, probably due to its intermittent reforms in profitability and corporate governance through engagement with overseas investors.</li>
<li>Few companies, like Hitachi, achieved sustainable growth by continuous business portfolio review. This has led to high stock price volatility for many companies that cannot enter the sustainable growth phase.</li>
</ul>


Overseas investors tend to invest in companies with larger market capitalization and higher profitability, and companies with higher foreign shareholdings have significantly better values in corporate governance.
Hitachi has been one of the most successful companies in this area, probably due to its intermittent reforms in profitability and corporate governance through engagement with overseas investors.
Few companies, like Hitachi, achieved sustainable growth by continuous business portfolio review. This has led to high stock price volatility for many companies that cannot enter the sustainable growth phase.


The Key Is to Achieve Sustainable Growth Through Continuous Business Portfolio Review

TSE Tokyo Price Index TOPIX

The Key Is to Achieve Sustainable Growth Through Continuous Business Portfolio Review