Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

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.

<ul>
<li>Regarding the Nikkei's article on the survey of companies with December fiscal year end shows that companies shifting to prime market have noticeably improved corporate governance, I considered the issues.</li>
<li>The reason of lifting % independent directors is because the prime market listing criteria included the ratio be at least 1/3, and many companies have raised it to that minimum.</li>
<li>The objective of the skills matrix isn't to create a skills matrix, but rather that it's a means to identify and recruit the human resources required for the future growth.</li>
</ul>


Regarding the Nikkei's article on the survey of companies with December fiscal year end shows that companies shifting to prime market have noticeably improved corporate governance, I considered the issues.
The reason of lifting % independent directors is because the prime market listing criteria included the ratio be at least 1/3, and many companies have raised it to that minimum.
The objective of the skills matrix isn't to create a skills matrix, but rather that it's a means to identify and recruit the human resources required for the future growth.


Japan's Governance: About the Article on the March Shareholders' Meeting Companies Update

<ul>
<li>This article will explore the differences in Metrical Universe 1,798 companies depending on whether the board of directors is chaired by an independent director referred to Nikkei's report. </li>
<li>Companies where an independent director chairs the board of directors have had mixed responses, with some practices considered not always positive in board practices.</li>
<li>In key practices, these companies are commendable in their approach, but many of them are not linked to profitability in terms of ROE and ROA, which doesn’t enhance the valuation.</li>
</ul>


This article will explore the differences in Metrical Universe 1,798 companies depending on whether the board of directors is chaired by an independent director referred to Nikkei's report. 
Companies where an independent director chairs the board of directors have had mixed responses, with some practices considered not always positive in board practices.
In key practices, these companies are commendable in their approach, but many of them are not linked to profitability in terms of ROE and ROA, which doesn’t enhance the valuation.


Japan's Governance: About an Article on Board Chair

<ul>
<li>Trust banks enhance their services to support IR-disclosure for mid-sized companies. These services include surveying institutional investors and reporting their opinions to the company, as well as searching substantial shareholder.</li>
<li>Medium-Sized companies have been reluctant to make IR disclosures and are eager to deepen their access to institutional investors. </li>
<li>This is due to the fact that companies that have not been able to meet the prime market listing criteria are faced with the need to increase their market capitalization.</li>
</ul>


Trust banks enhance their services to support IR-disclosure for mid-sized companies. These services include surveying institutional investors and reporting their opinions to the company, as well as searching substantial shareholder.
Medium-Sized companies have been reluctant to make IR disclosures and are eager to deepen their access to institutional investors. 
This is due to the fact that companies that have not been able to meet the prime market listing criteria are faced with the need to increase their market capitalization.


Japan's Governance: About an Article on IR Disclosure

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

NTT (Nippon Telegraph & Telephone) / Event-Driven

<ul>
<li>On 7 April, the JPX announced the changes to the Free Float Weights (FFW) for the TOPIX Index. There are some big changes due to the updated FFW methodology.</li>
<li>From April to June, we see a one-way turnover of 2.87% and a one-way trade of ¥2,285bn. Some stocks have opposite way flows in different months.</li>
<li>Stocks with inflows outperformed stocks with outflows from Oct-Dec 2021 before giving up all the gains. These stocks have started to outperform and could continue outperforming over the next quarter.</li>
</ul>


On 7 April, the JPX announced the changes to the Free Float Weights (FFW) for the TOPIX Index. There are some big changes due to the updated FFW methodology.
From April to June, we see a one-way turnover of 2.87% and a one-way trade of ¥2,285bn. Some stocks have opposite way flows in different months.
Stocks with inflows outperformed stocks with outflows from Oct-Dec 2021 before giving up all the gains. These stocks have started to outperform and could continue outperforming over the next quarter.


TOPIX FFW Transition - Big Flows from April to June

<ul>
<li>Nikkei carried an article titled "Toshiba, Mizuho, and Mitsubishi Electric Lighten Up on Censure Resignations without Renewal Power.” I would like to touch on the points discussed in the article.</li>
<li>Although the goal should be to take responsibility for scandals and to put a clean slate in place, there have been resignations that show delays in decision-making and lackadaisical succession system.</li>
<li>It shows only the form of board practices changes, but nothing changes on the inside and that scandals are repeated. Why do scandals repeat themselves are discussed in "Repeated Scandals".</li>
</ul>


Nikkei carried an article titled "Toshiba, Mizuho, and Mitsubishi Electric Lighten Up on Censure Resignations without Renewal Power.” I would like to touch on the points discussed in the article.
Although the goal should be to take responsibility for scandals and to put a clean slate in place, there have been resignations that show delays in decision-making and lackadaisical succession system.
It shows only the form of board practices changes, but nothing changes on the inside and that scandals are repeated. Why do scandals repeat themselves are discussed in "Repeated Scandals".


Japan's Governance: About an Article on Resignation of Taking Responsibility

Japan

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

TSE Tokyo Price Index TOPIX (TPX INDEX)

Japan's Governance: About the Article on the March Shareholders' Meeting Companies Update

Regarding the Nikkei's article on the updated survey of companies with December fiscal year end, this article will discuss the issues on %...

Metrical Inc

Japan's Governance: About an Article on Board Chair

This article will discuss the differences in 1,798 companies depending on whether the board of directors is chaired by an independent director in...

Metrical Inc

Japan's Governance: About an Article on IR Disclosure

The Nikkei reported that trust banks will strengthen IR disclosure support for listed mid-sized companies on March 340. This article would like to...

Metrical Inc

TOPIX FFW Transition - Big Flows from April to June

Changes to the Topix FFW methodology will result in a turnover of 2.87% & trade of ¥2,285bn from April to June. There is a lot to trade on some...

Brian Freitas

Japan's Governance: About an Article on Resignation of Taking Responsibility

Nikkei carried an article titled "Toshiba, Mizuho, and Mitsubishi Electric Lighten Up on Censure Resignations without Renewal Power.” I would like...

Metrical Inc