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.

Japan's Governance: How Far Has Corporate Governance Improved in 2021 (5) - Change in ％ of INEDs

Japan's Governance: TSE Market Reclassification: Results of Selection of New Market Segments

Japan's Governance: About the Article on Holding Shares Contributed to Retirement Benefit Trusts

Japan's Governance: How Far Has Corporate Governance Progressed in 2021(3)

Japan's Governance: How Far Has Corporate Governance Progressed in 2021? (1)

Japan's Governance: How Far Has Corporate Governance Progressed in 2021 (2)

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>I suspect that there are other incentives for companies to improve their corporate governance practices (especially board practices) than improved performance (improved ROA and ROE).</li>
<li>Companies that improved ROA used cash raised on B/S from increased profits to return profits to shareholders through increased dividends, but still lacked conviction in using cash for future growth.</li>
<li>It is inferred that companies with higher ROE tend to use cash to buy back their own shares.</li>
</ul>


I suspect that there are other incentives for companies to improve their corporate governance practices (especially board practices) than improved performance (improved ROA and ROE).
Companies that improved ROA used cash raised on B/S from increased profits to return profits to shareholders through increased dividends, but still lacked conviction in using cash for future growth.
It is inferred that companies with higher ROE tend to use cash to buy back their own shares.


Japan's Governance: How Far Corporate Governance Has Progressed in 2021? (4) - Change in ROA and ROE

TSE Tokyo Price Index TOPIX

Japan's Governance: How Far Corporate Governance Has Progressed in 2021? (4) - Change in ROA and ROE