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.

Companies Still Prioritize Compliance with the TSE over Consideration for Shareholders Interest

The Key Is when the Next Move Will Come that Steers Away from Increasing Cash on Hand

Many Companies Still Miss Opportunities to Deepen Investors' Understanding of Business Strategies

Recent Stock Price Rise May Be Due to Expectation for Greater Shareholder Returns Rather than Growth

Is Progressive Dividend Distribution the Result of Half-Baked Cash Allocation?

Many Companies Are in Stage of Setting Caps to Ensure that Cash on Hand Grows No More than Necessary

Isn't the Market Impatient for the Companies to Implement Management Reforms?

The Main Battlefield for Dissolution of Parent-Subsidiary Listings Will Shift to Standard Market

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The shift toward management that creates value through dialogue with overseas investors is evident in the relationship between foreign shareholding ratios, capital profitability, and stock price valuations.</li>
<li>There is significant correlation between cash reserves and ROA. ROA, which reflects the cash flow returns generated by a business, is considered to be closely related to stock price valuation.</li>
<li>Companies with high cash generation capabilities and large amounts of cash on hand are expected to invest in generating more cash flow and return cash to shareholders.</li>
</ul>


The shift toward management that creates value through dialogue with overseas investors is evident in the relationship between foreign shareholding ratios, capital profitability, and stock price valuations.
There is significant correlation between cash reserves and ROA. ROA, which reflects the cash flow returns generated by a business, is considered to be closely related to stock price valuation.
Companies with high cash generation capabilities and large amounts of cash on hand are expected to invest in generating more cash flow and return cash to shareholders.


Investors Are Less Interested in Companies that Generate Little Cash Despite Shareholder Returns

TSE Tokyo Price Index TOPIX

Investors Are Less Interested in Companies that Generate Little Cash Despite Shareholder Returns