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.

Will Change to Annual Securities Report Improve in % of Female Managers and Gender Wage Gap?

As Role of Outside Directors Becomes More Important, Is Effectiveness of BODs Improving Accordingly?

Election of Foreign Board Directors Is More Critical than ％ of Female Board Members

Thanks to TSE's Guidance, Parent-Subsidiary Listings Remain a Long-Lasting Investment Opportunity

Higher Foreign Shareholdings, Which Led to Fewer Takeover Defense, Push Companies To Further Reforms

The Postponement of the Parent-Subsidiary Listing Issue Provides Further Investment Opportunities

Will Management that Incorporates Cost of Capital Be Fully Implemented 7 Years from Now, in 2028?

Now Is Time to Increase the Number of Female Directors so that They Can Contribute to Value Creation

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Listed subsidiaries focusing on core businesses have higher capital profitability and stock valuations than parent companies, while parent companies with diversified businesses have lower than listed subsidiaries in the both.</li>
<li>By converting a listed subsidiary with high capital profitability into a wholly owned subsidiary, or by selling a listed subsidiary with low capital profitability,  it could increase profitability of parent.</li>
<li>Even though this was expected, parent-subsidiary listings continue to this day (recently, more subsidiaries are listing on Standard Market), and the value that can be reliably obtained is being lost.</li>
</ul>


Listed subsidiaries focusing on core businesses have higher capital profitability and stock valuations than parent companies, while parent companies with diversified businesses have lower than listed subsidiaries in the both.
By converting a listed subsidiary with high capital profitability into a wholly owned subsidiary, or by selling a listed subsidiary with low capital profitability,  it could increase profitability of parent.
Even though this was expected, parent-subsidiary listings continue to this day (recently, more subsidiaries are listing on Standard Market), and the value that can be reliably obtained is being lost.


Continuing Parent-Subsidiary Listings Is Losing Value that Could Be Reliably Obtained

TSE Tokyo Price Index TOPIX

Continuing Parent-Subsidiary Listings Is Losing Value that Could Be Reliably Obtained