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.

Focus on Cash Flow Recovery from Investments as Planned, as Well as Appropriate Cash Allocation

How to Make a Non-Functioning Statutory Auditor Function

Has the “Unit of Investment” Principle Spoiled the Companies?

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

To Expand Value and Improve Capital Profitability, the Promotion of Human Resources Is Necessary

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

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

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Without the driving force to generate cash flow in excess of the discount rate (cost of capital), there is not enough power to push stock valuations higher and higher.</li>
<li>The fact that 8% ROE is the threshold at which valuations change means that investors consider the cost of capital for Japanese equities to be roughly 8% on average.</li>
<li>Little progress has been made since 10 years ago, when the Ito Report advocated "shift to corporate value management with an awareness of capital efficiency" and "engagement of institutional investors.”</li>
</ul>


Without the driving force to generate cash flow in excess of the discount rate (cost of capital), there is not enough power to push stock valuations higher and higher.
The fact that 8% ROE is the threshold at which valuations change means that investors consider the cost of capital for Japanese equities to be roughly 8% on average.
Little progress has been made since 10 years ago, when the Ito Report advocated "shift to corporate value management with an awareness of capital efficiency" and "engagement of institutional investors.”


Will the Challenges that Have Taken a Decade to Make Progress Finally Be Resolved?

TSE Tokyo Price Index TOPIX

Will the Challenges that Have Taken a Decade to Make Progress Finally Be Resolved?