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.

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TSE's Request for Disclosure About Parent-Subsidiary Listings Is an Improvement, Not a Solution

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>It's true that the difference in profit margins between a listed subsidiary that focuses on specific business and a parent company that has different businesses is the difference in valuations. </li>
<li>It will be difficult for a parent company to reverse the valuations of its subsidiaries until the parent company dissolves the parent-subsidiary listing and increases its own profit margins.</li>
<li>With respect to corporate governance practices, companies with no major shareholders are included with relatively higher corporate governance scores, but this isn't as significant difference as it tends to be.</li>
</ul>


It's true that the difference in profit margins between a listed subsidiary that focuses on specific business and a parent company that has different businesses is the difference in valuations. 
It will be difficult for a parent company to reverse the valuations of its subsidiaries until the parent company dissolves the parent-subsidiary listing and increases its own profit margins.
With respect to corporate governance practices, companies with no major shareholders are included with relatively higher corporate governance scores, but this isn't as significant difference as it tends to be.


Will Parent Company Valuations Remain Undervalued Until the Parent-Subsidiary Listing Is Dissolved?

TSE Tokyo Price Index TOPIX

Will Parent Company Valuations Remain Undervalued Until the Parent-Subsidiary Listing Is Dissolved?