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.

The Expansion of TOPIX Components into Standard Market May Lead to a Decline in Practices

Japan's Governance: TOPIX Reform Update (2) - Change in Calculation Method of Floating Share Ratio

For Companies Surviving on TOPIX, Resolving Cross-Shareholdings and Achieving Growth Are Essential

Fewer TOPIX Remaining Companies Show the Difficulty of Producing Convincing Disclosures

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>To avoid being delisted from the TOPIX components, a company must reduce its cross-holdings and raise its stock price. Strengthening engagement with investors is also an effective strategy.</li>
<li>While the TOPIX is clearly defined based on market capitalization of free-floating shares, the TSE Prime Market exhibits a certain ambiguity that seems to favor listed companies over investors.</li>
<li>Stocks that are removed from TOPIX will need to attract investor attention through outperforming earnings more than ever before. They will also lose opportunities for engagement with domestic institutional investors.</li>
</ul>


To avoid being delisted from the TOPIX components, a company must reduce its cross-holdings and raise its stock price. Strengthening engagement with investors is also an effective strategy.
While the TOPIX is clearly defined based on market capitalization of free-floating shares, the TSE Prime Market exhibits a certain ambiguity that seems to favor listed companies over investors.
Stocks that are removed from TOPIX will need to attract investor attention through outperforming earnings more than ever before. They will also lose opportunities for engagement with domestic institutional investors.


Compared to the TOPIX, Which Has Clear Criteria, the TSE Prime Market Appears Vague

TSE Tokyo Price Index TOPIX

Compared to the TOPIX, Which Has Clear Criteria, the TSE Prime Market Appears Vague