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.

This Revision to Corporate Governance Codes Could Be Perceived as Defending Outdated Practices

Company Initiatives Appear to Take Longer than a Year to Be Reflected in Stock Valuations

What Factors Have Raised Stock Valuations over the 2 Years and 8 Months Since the TSE's Request?

Companies that Fail to Be Accountable Raise Concerns About Their Fulfillment of Management Goals

What Are the Reasons Japanese Companies Cannot Overcome the Drawbacks of Traditional Management?

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>A more direct way to resolve management challenges is to address the structural issue of trading liquidity being significantly lower than market capitalization and thereby attract attention of global investors.</li>
<li>Companies should strive to resolve cross-shareholdings promptly. Prompt elimination of parent-subsidiary listings—in the broad sense—will lead to improved profitability for both the parent company and its affiliates.</li>
<li>This structural issue is the reason why companies that wish to continue operating based on traditional values are still able to hold a majority of voting rights.</li>
</ul>


A more direct way to resolve management challenges is to address the structural issue of trading liquidity being significantly lower than market capitalization and thereby attract attention of global investors.
Companies should strive to resolve cross-shareholdings promptly. Prompt elimination of parent-subsidiary listings—in the broad sense—will lead to improved profitability for both the parent company and its affiliates.
This structural issue is the reason why companies that wish to continue operating based on traditional values are still able to hold a majority of voting rights.


Japanese Stocks' Low Trading Liquidity Has Adversely Affected Management's Shift To Value Creation

TSE Tokyo Price Index TOPIX

Japanese Stocks' Low Trading Liquidity Has Adversely Affected Management's Shift To Value Creation