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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-sumishin-net-bank" target="_blank" data-smartkarma-citation="entities:34572:1" rel="noopener">SBI Sumishin Net Bank (7163 JP)</a>'s listing has been approved by the JPX and the stock is expected to start trading on 24 March. </li>
<li>News reports indicate a raise of US$1bn (JPY 115.5bn). This translates to an IPO price of JPY 1,920/share, valuing the company at JPY 300bn (US$2.59bn).</li>
<li>The stock should be added to the <a href="https://www.smartkarma.com/entities/tokyo-stock-exchange-tokyo-price-index-topix" target="_blank" data-smartkarma-citation="entities:22910:1" rel="noopener">TPX INDEX</a> at the close on 27 April where trackers will need to buy over 14% of the stock issued in the IPO.</li>
</ul>



SBI Sumishin Net Bank (7163 JP)'s listing has been approved by the JPX and the stock is expected to start trading on 24 March. 
News reports indicate a raise of US$1bn (JPY 115.5bn). This translates to an IPO price of JPY 1,920/share, valuing the company at JPY 300bn (US$2.59bn).
The stock should be added to the TPX INDEX at the close on 27 April where trackers will need to buy over 14% of the stock issued in the IPO.


SBI Sumishin Net Bank (7163 JP) IPO: Listing in March, TPX Inclusion Possibly in April

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>This article focuses on whether or not a company has takeover defense measures, and conducts further analysis in the evaluation items of Profile, Key Performance Indicators and Corporate Governance Practices.</li>
<li>Since the presence or absence of anti-takeover measures wasn't significantly correlated with other board practices, they stand apart from improving efforts in other practices and maintain as an independent policy.</li>
<li>Companies with anti-takeover show negative correlations with asset/capital efficiency, capital allocation and communication with investors, so companies should be watched if this is related to their inferior ROE and ROA.</li>
</ul>


This article focuses on whether or not a company has takeover defense measures, and conducts further analysis in the evaluation items of Profile, Key Performance Indicators and Corporate Governance Practices.
Since the presence or absence of anti-takeover measures wasn't significantly correlated with other board practices, they stand apart from improving efforts in other practices and maintain as an independent policy.
Companies with anti-takeover show negative correlations with asset/capital efficiency, capital allocation and communication with investors, so companies should be watched if this is related to their inferior ROE and ROA.


Japan's Governance: Considerations for Takeover Defense Measures (3)

<ul>
<li>This article focuses on the number of ex-CEO advisors and attempts to analyze them in terms of the Profile, Key Performance Indicators and Corporate Governance Practices.</li>
<li>Larger companies with more total assets have more ex-CEO advisors, and these companies excel in certain board practices, such as number of female directors, nomination and compensation committee scores.</li>
<li>Overseas investors would pay attention to (future) earnings power to improve investment returns even when they invest in companies with many ex-CEO advisors (negative in terms of board practices).</li>
</ul>


This article focuses on the number of ex-CEO advisors and attempts to analyze them in terms of the Profile, Key Performance Indicators and Corporate Governance Practices.
Larger companies with more total assets have more ex-CEO advisors, and these companies excel in certain board practices, such as number of female directors, nomination and compensation committee scores.
Overseas investors would pay attention to (future) earnings power to improve investment returns even when they invest in companies with many ex-CEO advisors (negative in terms of board practices).


Japan's Governance: Discussion of Ex-CEO Advisors Factor

<ul>
<li>This article is a follow-up to the previous one and will further explore how the ratio of foreign shareholders affects companies that have anti-takeover measures.</li>
<li>There is a correlation between the increase in the percentage of foreign shareholders and the decrease in the percentage in favor of the proposal to continue takeover defense measures.</li>
<li>Overseas investors invest in companies with high profitability even when investing in companies with anti-takeover, and portfolio companies tend to try to improve other practices while retaining takeover defense measures.</li>
</ul>


This article is a follow-up to the previous one and will further explore how the ratio of foreign shareholders affects companies that have anti-takeover measures.
There is a correlation between the increase in the percentage of foreign shareholders and the decrease in the percentage in favor of the proposal to continue takeover defense measures.
Overseas investors invest in companies with high profitability even when investing in companies with anti-takeover, and portfolio companies tend to try to improve other practices while retaining takeover defense measures.


Japan's Governance: Takeover Defense Measures and Foreign Shareholder Ratio

<ul>
<li>This article explored what kind of companies overseas investors are investing in in terms of Key Performance Indicators and Corporate Governance Practices by focusing on the percentage of foreign shareholders.</li>
<li>The group of companies with the higher percentage of foreign shareholders tend to have higher ROE, ROA and Tobin's q, as well as better values in many corporate governance criteria.</li>
<li>The difference in Key Performance Indicators and corporate governance practices between the group with &gt;30% and =&lt; 30% in foreign shareholding suggests that there is a watershed around 30% shareholding.</li>
</ul>


This article explored what kind of companies overseas investors are investing in in terms of Key Performance Indicators and Corporate Governance Practices by focusing on the percentage of foreign shareholders.
The group of companies with the higher percentage of foreign shareholders tend to have higher ROE, ROA and Tobin's q, as well as better values in many corporate governance criteria.
The difference in Key Performance Indicators and corporate governance practices between the group with &gt;30% and =&lt; 30% in foreign shareholding suggests that there is a watershed around 30% shareholding.


Japan's Governance: Considerations Regarding the Percentage of Foreign Shareholders

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)

SBI Sumishin Net Bank (7163 JP) IPO: Listing in March, TPX Inclusion Possibly in April

JPX has approved SBI Sumishin Net Bank's IPO and the stock should list on 24 March. First Section on listing and then to the Prime Market. TOPIX...

Brian Freitas

Japan's Governance: Considerations for Takeover Defense Measures (3)

This article will further analyze what kind of companies adopt anti-takeover measures and what kind of corporate governance practices these...

Metrical Inc

Japan's Governance: Discussion of Ex-CEO Advisors Factor

This article discuss the ex-CEO advisors factor in terms of the Profile, Key Performance Indicators and Corporate Governance Practices and attempt...

Metrical Inc

Japan's Governance: Takeover Defense Measures and Foreign Shareholder Ratio

This article examines anti-takeover with a focus on % foreign shareholders. There is correlation between % foreign shareholders and % of support...

Metrical Inc

Japan's Governance: Considerations Regarding the Percentage of Foreign Shareholders

Analysis of Performance and Governance on ％ foreign shareholding, shows that there are differences between groups with >30% and =< 30%, indicating...

Metrical Inc