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>Even in parent-subsidiary listings, which form the core of business portfolio restructuring, some large companies have begun taking action, raising expectations for further improvements in capital profitability.</li>
<li>Companies that have businesses with low capital profitability often lack clear criteria for exiting those businesses, or even if they have established exit criteria, they aren't actually applied in practice.</li>
<li>Some companies still believe they cannot withdraw because establishing clear criteria would create inconsistencies with their current low-return capital business, forcing someone to clarify where responsibility lies.</li>
</ul>


Even in parent-subsidiary listings, which form the core of business portfolio restructuring, some large companies have begun taking action, raising expectations for further improvements in capital profitability.
Companies that have businesses with low capital profitability often lack clear criteria for exiting those businesses, or even if they have established exit criteria, they aren't actually applied in practice.
Some companies still believe they cannot withdraw because establishing clear criteria would create inconsistencies with their current low-return capital business, forcing someone to clarify where responsibility lies.


Japanese Companies Aren't Good at Adjusting Course or Withdrawing in Line with Environmental Changes

Co-Founder & CEO, Newmark Risk

Nicholas Pezolano

Co-Founder & CEO

Option analytics for institutional investors

Newmark Risk

Fin-tech company focused on providing option derived analytics for institutional investors.

We handle the complexity of options data so you don't have to.

- Data and Analytics available all in one place so you can focus on Strategy Development
- Custom Solutions for your data and/or portfolio needs
- Advisory services to lend our expertise

Knowledge is something that was meant to be shared and we provide insights to our clients and to the community via posting about our research findings.

Equity Derivatives

TSE Tokyo Price Index TOPIX / Equity Derivatives

<ul><li>A cross-country study on the post earning announcement drift effect.</li><li>We explore the use of various options-implied analytics to systematically view returns around earnings announcements.  </li><li>Options-Implied Analytics can provide empowering information to better inform investment decisions.</li></ul>

A cross-country study on the post earning announcement drift effect.We explore the use of various options-implied analytics to systematically view returns around earnings announcements.  Options-Implied Analytics can provide empowering information to better inform investment decisions.

EQD | A Systematic Look at the Post Earnings Announcement Drift Across Asia

<ul>
<li>The shift toward management that creates value through dialogue with overseas investors is evident in the relationship between foreign shareholding ratios, capital profitability, and stock price valuations.</li>
<li>There is significant correlation between cash reserves and ROA. ROA, which reflects the cash flow returns generated by a business, is considered to be closely related to stock price valuation.</li>
<li>Companies with high cash generation capabilities and large amounts of cash on hand are expected to invest in generating more cash flow and return cash to shareholders.</li>
</ul>


The shift toward management that creates value through dialogue with overseas investors is evident in the relationship between foreign shareholding ratios, capital profitability, and stock price valuations.
There is significant correlation between cash reserves and ROA. ROA, which reflects the cash flow returns generated by a business, is considered to be closely related to stock price valuation.
Companies with high cash generation capabilities and large amounts of cash on hand are expected to invest in generating more cash flow and return cash to shareholders.


Investors Are Less Interested in Companies that Generate Little Cash Despite Shareholder Returns

<ul>
<li>Amidst very modest improvements in corporate governance over the past few years, the percentage of female board members has steadily increased.</li>
<li>Even if the %of female board members rises, there're concerns that it will be a repeat of governance reforms that have't achieved to transform management into one that creates value.</li>
<li>Whether companies that step forward with diversity-conscious boards of directors can use this as a catalyst for management change, and promote female executive directors within companies, will be closely watched.</li>
</ul>


Amidst very modest improvements in corporate governance over the past few years, the percentage of female board members has steadily increased.
Even if the %of female board members rises, there're concerns that it will be a repeat of governance reforms that have't achieved to transform management into one that creates value.
Whether companies that step forward with diversity-conscious boards of directors can use this as a catalyst for management change, and promote female executive directors within companies, will be closely watched.


Behind % Rising Female Board Members, How Many Companies Make Progress Reforming Their Boards?

<ul>
<li>The reason why IPOs tend to become the goal is that many IPOs are conducted for purposes other than company growth after IPOs.</li>
<li>In order to correct the notion that “IPO is the goal,” there are expectations for the revitalization of the market for trading unlisted shares and M&amp;A of unlisted companies.</li>
<li>With the entry of unlisted stock funds, trading in privately-held stocks will become active, and if M&amp;A for growth and management changes take place, the quality of IPOs will improve.</li>
</ul>


The reason why IPOs tend to become the goal is that many IPOs are conducted for purposes other than company growth after IPOs.
In order to correct the notion that “IPO is the goal,” there are expectations for the revitalization of the market for trading unlisted shares and M&amp;A of unlisted companies.
With the entry of unlisted stock funds, trading in privately-held stocks will become active, and if M&amp;A for growth and management changes take place, the quality of IPOs will improve.


The Key to Revitalizing Existing TSE Growth Companies Is Whether They Can Expect Growth Through M&A

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)

Japanese Companies Aren't Good at Adjusting Course or Withdrawing in Line with Environmental Changes

I would like to discuss the issues on the Nikkei article dated August 28 titled “Major Companies' ROIC Approaches ‘Passing Grade’; Withdrawal from...

Metrical Inc

EQD | A Systematic Look at the Post Earnings Announcement Drift Across Asia

We leverage a few analytics from NewMark Risk's proprietary Options Implied Analytics library to enhance common strategies to trade earnings...

Nicholas Pezolano

Investors Are Less Interested in Companies that Generate Little Cash Despite Shareholder Returns

I would like to discuss the issues on the Nikkei newspaper article dated August 21, titled “300 companies disclose how they use their money, double...

Metrical Inc

Behind % Rising Female Board Members, How Many Companies Make Progress Reforming Their Boards?

I would like to discuss the issues on the Nikkei newspaper article dated August 20, titled “Mercari ranks first with 58.3% female board directors.”

Metrical Inc

The Key to Revitalizing Existing TSE Growth Companies Is Whether They Can Expect Growth Through M&A

I would like to discuss the issues on the Nikkei newspaper article dated August 1, titled “Fund to resolve Japan's small-cap listing issue:...

Metrical Inc