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.

Ownership of Company Stock Is a Key in Managing the Company with the Same Goals as Shareholders

ROE and Valuations of Japanese Stocks Will Improve Through Dissolution of Parent-Subsidiary Listings

CG Watch, Which Made Great Strides Will Be Tested Next Time for Substantial Governance Improvements

Independence of BOD Is Necessary, but Can Independence of Subordinate Companies Really Be Ensured?

Still Many "Parent-Subsidiary Listings" Keep to Provide Investment Opportunities for Inefficiencies

Next Corporate Governance Code Revision May Further Dissolve Parent-Subsidiary Listings

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

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

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Parent-Subsidiary listings present several problems: the disadvantages to parent company's shareholders that drain subsidiary's profits, the distortion of market capitalization between subsidiary and parent company, and independence of subsidiary's management.</li>
<li>While it’s an improvement for TSE to ask companies to disclose their purpose and policy of listing subsidiaries and affiliates, it doesn't ensure the complete independence of subsidiaries and affiliates.</li>
<li>More than 30% of listed companies are listed subsidiaries or affiliates. Investors are forced to look for investment targets while worrying about management independence in 70% of the companies.</li>
</ul>


Parent-Subsidiary listings present several problems: the disadvantages to parent company's shareholders that drain subsidiary's profits, the distortion of market capitalization between subsidiary and parent company, and independence of subsidiary's management.
While it’s an improvement for TSE to ask companies to disclose their purpose and policy of listing subsidiaries and affiliates, it doesn't ensure the complete independence of subsidiaries and affiliates.
More than 30% of listed companies are listed subsidiaries or affiliates. Investors are forced to look for investment targets while worrying about management independence in 70% of the companies.


TSE's Request for Disclosure About Parent-Subsidiary Listings Is an Improvement, Not a Solution

TSE Tokyo Price Index TOPIX

TSE's Request for Disclosure About Parent-Subsidiary Listings Is an Improvement, Not a Solution