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.

A Few Students Were Motivated by Assignments from Their Teachers, and They Performed Differently

If ESG Is Related to Improved Corporate Value, Doesn't Slow ROE Imply Stalled in Real ESG Efforts?

Maybe There Are Many Companies in Japan that Have the Resources but Neglect Efforts to Increase ROA

Deepening Cash Allocation Required This Year of a New All-Time High in Share Repurchases

Share Repurchases Should Be Tailored to the Individual Company's Effective Cash Allocation

Effective Share-Buyback Require Proven Track Record and Communication to Gain Investor Understanding

In-Depth Approach Is Necessary for Companies Seeking Further Communication with Overseas Investors

Review of TSE Market Reclassification Requires a Big Cleanup, Not a Small Cleanup as It Should Be

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Companies are presumably allocating cash to shareholder returns rather than investing in growth. Lack of investment in growth may lead to slower profit growth, which leads to lower valuations.</li>
<li>There is concern that management may be hesitant to take risks. Since no shareholder hates shareholder returns, they may be easily diverted to share repurchases that don't require risk-taking decision.</li>
<li>Although the expected share repurchase will limit the risk of sharp decline in the stock prices, modest growth investments are likely to prevent the expansion of multiples.</li>
</ul>


Companies are presumably allocating cash to shareholder returns rather than investing in growth. Lack of investment in growth may lead to slower profit growth, which leads to lower valuations.
There is concern that management may be hesitant to take risks. Since no shareholder hates shareholder returns, they may be easily diverted to share repurchases that don't require risk-taking decision.
Although the expected share repurchase will limit the risk of sharp decline in the stock prices, modest growth investments are likely to prevent the expansion of multiples.


Companies that Buy Back Their Own Shares but Do Not Increase Their Share Price Should Consider Why

TSE Tokyo Price Index TOPIX

Companies that Buy Back Their Own Shares but Do Not Increase Their Share Price Should Consider Why