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.

Public Opinion Is Slowly Catching Up, but the Change Has Only Just Begun

The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

ROE up Modestly, but ROE Plus DOE Is Expected to Reach a Record High This Fiscal Year

"TSE's Request" Could Be a Harvest that Has Made It Easier to Compare Managers with Stock Valuations

Managers Should Consider That "TSE's Request" Has Changed the Rules of the Game

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Many companies that cannot make significant investments in growth will reduce cash from their balance sheets through shareholder returns, and ROE+DOE will continue to reach high levels in FY2023.</li>
<li>A company with a P/B of less than 1x for a long time should consider the option of going private after weighing the costs and benefits of being listed.</li>
<li>Although most of the shareholder proposals will be rejected unless the foreign ownership is very high, whether the voting rights of domestic institutional investors will change remains to be seen.</li>
</ul>


Many companies that cannot make significant investments in growth will reduce cash from their balance sheets through shareholder returns, and ROE+DOE will continue to reach high levels in FY2023.
A company with a P/B of less than 1x for a long time should consider the option of going private after weighing the costs and benefits of being listed.
Although most of the shareholder proposals will be rejected unless the foreign ownership is very high, whether the voting rights of domestic institutional investors will change remains to be seen.


Watch for Changes in Proxy Voting by Domestic Institutional Investors on Shareholder Proposals

TSE Tokyo Price Index TOPIX

Watch for Changes in Proxy Voting by Domestic Institutional Investors on Shareholder Proposals