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.

Can Japanese Companies Recover What They’ve Lost over 40 Years? Accounting Standard Revision Debate

Although It'll Take Time, There's No Need to Be Pessimistic if Management Reform Is Finally Underway

Accountability to Shareholders, Transparency, and Governance that Embraces Diverse Values Are Needed

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>“Management reforms focused on governance and capital efficiency” are not progressing as expected. Nevertheless, it appears that investors have expectations that exceed what these reforms can deliver.</li>
<li>Looking at the recent trends among companies, a major difference from the past is that more companies are no longer hesitant to pass on rising costs to their selling prices.</li>
<li>Management reforms will still take some time. Investors are trying to determine whether a company can operate in a way that allows it to pass on rising costs to customers.</li>
</ul>


“Management reforms focused on governance and capital efficiency” are not progressing as expected. Nevertheless, it appears that investors have expectations that exceed what these reforms can deliver.
Looking at the recent trends among companies, a major difference from the past is that more companies are no longer hesitant to pass on rising costs to their selling prices.
Management reforms will still take some time. Investors are trying to determine whether a company can operate in a way that allows it to pass on rising costs to customers.


Investors Are Trying to Assess a Company Through Price Pass-Through

TSE Tokyo Price Index TOPIX

Investors Are Trying to Assess a Company Through Price Pass-Through