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.

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

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

Higher Valuations Require Increased Return on Capital to Attract the Attention of Overseas Investors

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

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

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The high percentage of foreign ownership is a characteristic of companies that have improved capital profitability and increased valuations, which is effective for overseas investor engagement.</li>
<li>If the system is revised to help collaborative engagement and the identification of substantial shareholders, some of the challenges will be eliminated for both investors and the company.</li>
<li>To make the engagement more effective, investors should increase active funds and companies should decrease cross-shareholdings.</li>
</ul>


The high percentage of foreign ownership is a characteristic of companies that have improved capital profitability and increased valuations, which is effective for overseas investor engagement.
If the system is revised to help collaborative engagement and the identification of substantial shareholders, some of the challenges will be eliminated for both investors and the company.
To make the engagement more effective, investors should increase active funds and companies should decrease cross-shareholdings.


What Investors and Companies Should Do to Make Engagement More Effective ....

TSE Tokyo Price Index TOPIX

What Investors and Companies Should Do to Make Engagement More Effective ....