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.

Reducing Policy Shareholdings May Be a Sign of Seriousness to Improve Management

Clues to Management Change Are % Independent Directors and .....

What Lies Behind the Inability to Come up with Flexible Cash Usage Is

Few Companies Have Started to Move Yet, but Can They Raise R & D Investment to Regain Pricing Power?

The Solution to Better Corporate Governance Is to Reduce the # of Companies with Large Shareholders

Shareholder Returns Will Increase over June AGM, but Will Companies Hold up with Sluggish ROE?

TSE's "Request" Is a Catalyst for a Final Decision on the Foundation of Years of Engagement

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Companies with the ROE over 15% have higher market capitalization, foreign ownership, and Tobin's Q, and naturally higher ROA, while the opposite tends to be true companies with low ROE.</li>
<li>Groups with ROE above 15% have generally improved their corporate governance practices, but they still need to address their use of cash in order to further improve return on capital.</li>
<li>It's clear that companies with low ROE have the form of board practices but not the substance, and that they don't have a clear policy for increasing return on capital.</li>
</ul>


Companies with the ROE over 15% have higher market capitalization, foreign ownership, and Tobin's Q, and naturally higher ROA, while the opposite tends to be true companies with low ROE.
Groups with ROE above 15% have generally improved their corporate governance practices, but they still need to address their use of cash in order to further improve return on capital.
It's clear that companies with low ROE have the form of board practices but not the substance, and that they don't have a clear policy for increasing return on capital.


Companies with Low ROEs Have Corporate Governance Practices that Only Make It So

TSE Tokyo Price Index TOPIX

Companies with Low ROEs Have Corporate Governance Practices that Only Make It So