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.

Although the Cost of Capital for CBs Should Be Considered Much Higher than for SBs

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

Companies Without Engagement Opportunities Lack a Sense of Urgency to Solve Problems

Many Companies Still Consider Engagement with Investors to Be Someone Else's Business

Improved Profitability to Attract Overseas Investors Key to Raise Valuation Even After TSE's Request

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

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

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Few companies file their annual securities reports prior to AGM, and since they are filed 1-2 days prior to AGM, there's insufficient time for a thorough review of useful information.</li>
<li>Profitable companies that gain the support of overseas investors further increase their return on capital through engagement, and the gap between them and those that don't will continue to widen.</li>
<li>Since reducing policy shareholdings will reduce the percentage of voting rights that unconditionally favor company proposals, engagement will be more effective and speed up the process of management improvement.</li>
</ul>


Few companies file their annual securities reports prior to AGM, and since they are filed 1-2 days prior to AGM, there's insufficient time for a thorough review of useful information.
Profitable companies that gain the support of overseas investors further increase their return on capital through engagement, and the gap between them and those that don't will continue to widen.
Since reducing policy shareholdings will reduce the percentage of voting rights that unconditionally favor company proposals, engagement will be more effective and speed up the process of management improvement.


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

TSE Tokyo Price Index TOPIX

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