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

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

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

Higher ROE & ROA Are Keys to Higher Valuation, but This Wasn't Easy for Companies with Low Valuation

Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings

Governance Improvement in 2023 Was Modest but Saved by a Rise in % Woman Board Members

Shareholder Returns Should Be Examined on a Cash Basis, Not on a Net Profit Basis

First Step in Engagement in Term of Listening to Overseas Investors Is Seeking Disclosure in English

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Companies with higher ratings for Corporate Governance Practices (Board Practices and Key Actions) tend to have significantly higher profitability, market capitalization and valuations.</li>
<li>Foreign ownership has the highest correlation with the Metrical CG score, suggesting that years of overseas investor engagement have improved the companies' corporate governance practices and profitability.</li>
<li>The pace of efforts varies with criteria of Corporate Governance Practices.  Companies with Metrical CG scores of over 70% are ahead in % independent directors and % female board members.</li>
</ul>


Companies with higher ratings for Corporate Governance Practices (Board Practices and Key Actions) tend to have significantly higher profitability, market capitalization and valuations.
Foreign ownership has the highest correlation with the Metrical CG score, suggesting that years of overseas investor engagement have improved the companies' corporate governance practices and profitability.
The pace of efforts varies with criteria of Corporate Governance Practices.  Companies with Metrical CG scores of over 70% are ahead in % independent directors and % female board members.


Why Are Companies with High Corporate Governance Practices Ratings More Profitable?

TSE Tokyo Price Index TOPIX

Why Are Companies with High Corporate Governance Practices Ratings More Profitable?