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.

In the Prime Market, Disclosure in English Also Widens the Gap in the Company's Attitude

Continued Creation of JPX Prime 150-Type Passive Funds Will Help Solve TOPIX Challenges

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

Investors Expect a Feasible Management Strategy Rather than an Accurate Cost of Capital

TSE Should Aim for a Quality Market Rather than a Market Where Listed Companies Can Easily Inhabit

Too Many Portfolio Companies Is One of the Reasons for Not Enough Engagement

From the Reality of 4%, Mandatory English Disclosure of Annual Securities Reports Is a High Hurdle

The Standard that All 1,600 Prime Market Companies Could Do Would Be Loose

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The fact that many companies have low actual returns is the crux of the problem; investors will likely increase pressure on the companies as ROEs haven't increased noticeably in 2023.</li>
<li>TSE may have indicated the points for disclosure, based in part on the experience of few companies that achieved the listing criteria by successfully disclosing their "plans" for transitional measures.</li>
<li>March 2023, TSE published "Request for Disclosure on the Status of Dialogue with Shareholders." However, mismatches between companies and investors makes it difficult to require all prime market companies this.</li>
</ul>


The fact that many companies have low actual returns is the crux of the problem; investors will likely increase pressure on the companies as ROEs haven't increased noticeably in 2023.
TSE may have indicated the points for disclosure, based in part on the experience of few companies that achieved the listing criteria by successfully disclosing their "plans" for transitional measures.
March 2023, TSE published "Request for Disclosure on the Status of Dialogue with Shareholders." However, mismatches between companies and investors makes it difficult to require all prime market companies this.


Will Disclosure for This P/B Rise Based on the Failure of Transitional Companies "Plan" Work?

TSE Tokyo Price Index TOPIX

Will Disclosure for This P/B Rise Based on the Failure of Transitional Companies "Plan" Work?