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.

Another Catalyst for Expected Reduction in Policy Shareholdings

Companies Are Finally at the Starting Line of Taking the First Steps to Improve ROE

Investors Will Again Demand Concrete Measures to Raise ROE and Boost Shareholder Returns in FY3/2025

Don't Forget to Check for Deemed Shares Even if a Company Have Reduced Its Policy Shareholdings

Policy Shareholdings, if Reduced, Should Be Used for Profitable Investments

Do Not Miss the Movement of Deemed Cross-Held Shares, Which Are the Last Resort of Cross-Held Shares

Amid Slow ROE Improvement, Calls for Stronger Shareholder Returns Will Become Even Stronger

Share Buyback Are Likely Due to Reduction of Shares in Retirement Benefit Trusts and Policy Holdings

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Tobin's Q is not high for companies whose policy holdings are low relative to their net assets or total assets. When discussing policy shareholdings, deemed shareholdings should be included.</li>
<li>Companies with a low ratio of total policy holdings plus deemed holdings to total assets have notably higher ROE, ROA, and Tobin's Q. Vice versa.</li>
<li>These companies generate returns exceeding their cost of capital and are managed with asset and capital efficiency in mind, which shows in their approach to policy shareholdings as governance practices.</li>
</ul>


Tobin's Q is not high for companies whose policy holdings are low relative to their net assets or total assets. When discussing policy shareholdings, deemed shareholdings should be included.
Companies with a low ratio of total policy holdings plus deemed holdings to total assets have notably higher ROE, ROA, and Tobin's Q. Vice versa.
These companies generate returns exceeding their cost of capital and are managed with asset and capital efficiency in mind, which shows in their approach to policy shareholdings as governance practices.


Why Should Policy Shares Be Viewed as Including Deemed Shares Held?

TSE Tokyo Price Index TOPIX

Why Should Policy Shares Be Viewed as Including Deemed Shares Held?