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.

Adopting DOE Is Step Forward, but Explanation Needed to Step into Strategic Allocation of Cash Flow

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

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

Engagement Keeps Widening the Profitability Gap Between the Top and Bottom Companies in Market Cap

Companies with High Corporate Governance Practices Have High ROE, but Not Vice Versa

Only Seriousness of Shareholder Return Can Judge Change in Management in 1 Year After TSE's Request

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Since TSE's request, more companies have used ROE or ROIC as KPIs in mid-term management plans, but even now, more companies only indicate targets for sales, operating profit, etc.</li>
<li>Larger companies have been the first to raise ROE; the key will be for smaller companies, which have been slower to improve their ROE, to raise their ROE.</li>
<li>Many companies have only just begun to reduce their policy shareholdings and strengthen shareholder returns, and are still in the process of addressing the core issue of increasing profit margins.</li>
</ul>


Since TSE's request, more companies have used ROE or ROIC as KPIs in mid-term management plans, but even now, more companies only indicate targets for sales, operating profit, etc.
Larger companies have been the first to raise ROE; the key will be for smaller companies, which have been slower to improve their ROE, to raise their ROE.
Many companies have only just begun to reduce their policy shareholdings and strengthen shareholder returns, and are still in the process of addressing the core issue of increasing profit margins.


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

TSE Tokyo Price Index TOPIX

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