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.

Investors Are Looking for Solutions to Challenges, Not Simply Improved Communication with Investors

Many Companies Still Consider Engagement with Investors to Be Someone Else's Business

Key to Look Carefully to See if What Is Disclosed Is Consistent with Profitability and Other Results

Guidebook for Raising P/B Published, but Still Much Work to Be Done to Achieve Goals

Raising ROE May Require Raising Proxy Voting Guidelines

To Raise ROE, Breaking Away from Familiar Relationships and Creating Tension in Management Is Key

What Happens to the Effectiveness of TSE Requests when They Become Effort Obligations?

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Since shareholder proposals related to "TSE requests" are unlikely to be passed at the AGM, many companies are likely to have capital profitability improvement plans that merely indicate effort targets.</li>
<li>The outperformance of TOPIX by the company that announced the medium-term management plan can be attributed to the short-term outperformance of the company that announced the share repurchase.</li>
<li>Investors don’t trust the contents of "mid-term management plan" because they are focusing on more reliable shareholder return rather than betting on improving operating margins over the uncertain three-year horizon.</li>
</ul>


Since shareholder proposals related to "TSE requests" are unlikely to be passed at the AGM, many companies are likely to have capital profitability improvement plans that merely indicate effort targets.
The outperformance of TOPIX by the company that announced the medium-term management plan can be attributed to the short-term outperformance of the company that announced the share repurchase.
Investors don’t trust the contents of "mid-term management plan" because they are focusing on more reliable shareholder return rather than betting on improving operating margins over the uncertain three-year horizon.


Investors Still Do Not Trust the Profit Margin Improvement in the Mid-Term Management Plan

TSE Tokyo Price Index TOPIX

Investors Still Do Not Trust the Profit Margin Improvement in the Mid-Term Management Plan