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.

Financial Institutions Should Accelerate the Reduction of Their Policy Shareholdings

How Long Can a Model Where Profit Is Helped by Low Growth in Labor Cost and Depreciation Continue?

Many Companies that Have Seen Their Founding Family's Stake Decline but Retain CEO Have Challenges

Both Bond Investors and Stock Investors Are Focused on Future Cash Flows that a Company Will Produce

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>In the past, dividends paid out of net income were often mistakenly regarded as “equity costs.” Consequently, many companies have adopted the concept of payout ratio as their dividend policy.</li>
<li>The increasing number of companies adopting dividend policy based on DOE may help curb the expansion of shareholders' equity, but it hasn't yet led to active use to raise ROE.</li>
<li>Few managers still understand that entire FCF belongs to shareholders. Due to the unfortunate history of dividends mistakenly viewed as “equity costs,” few companies clearly articulate their cash allocation strategies.</li>
</ul>


In the past, dividends paid out of net income were often mistakenly regarded as “equity costs.” Consequently, many companies have adopted the concept of payout ratio as their dividend policy.
The increasing number of companies adopting dividend policy based on DOE may help curb the expansion of shareholders' equity, but it hasn't yet led to active use to raise ROE.
Few managers still understand that entire FCF belongs to shareholders. Due to the unfortunate history of dividends mistakenly viewed as “equity costs,” few companies clearly articulate their cash allocation strategies.


Companies Unable to Escape the Curse of the Unfortunate History of Misunderstanding “Cost of Equity”

TSE Tokyo Price Index TOPIX

Companies Unable to Escape the Curse of the Unfortunate History of Misunderstanding “Cost of Equity”