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.

What Is Needed for More Engagement to Be Effective Is to Reduce Policy Shareholdings

Although the Cost of Capital for CBs Should Be Considered Much Higher than for SBs

What Investors and Companies Should Do to Make Engagement More Effective ....

Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings

Higher Valuations Require Increased Return on Capital to Attract the Attention of Overseas Investors

The Key to Higher ROE Is Higher Profit Margins and Faster Efforts by Smaller Companies

Companies with High Corporate Governance Practices Have High ROE, but Not Vice Versa

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The dissolution of cross-shareholdings and changing environment in which foreign ownership has risen to 30% have changed the view of activist investors. TSE is one such example of big change.</li>
<li>It's convenient that activist investors can use “TSE requested” language that is both easily understood and undeniable by the company when communicating with the portfolio company to improve its issues.</li>
<li>We must determine whether this is a temporary return to shareholders until the activist investors are removed from the shareholder list, or a shift to value-creating management.</li>
</ul>


The dissolution of cross-shareholdings and changing environment in which foreign ownership has risen to 30% have changed the view of activist investors. TSE is one such example of big change.
It's convenient that activist investors can use “TSE requested” language that is both easily understood and undeniable by the company when communicating with the portfolio company to improve its issues.
We must determine whether this is a temporary return to shareholders until the activist investors are removed from the shareholder list, or a shift to value-creating management.


Determine Whether Shareholder Return Is a Temporary Measure or a Shift to Value-Creating Management

TSE Tokyo Price Index TOPIX

Determine Whether Shareholder Return Is a Temporary Measure or a Shift to Value-Creating Management