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.

Revision of the Corporate Governance Code Requires Substantive Discussion, Not Individual Issues

The Starting Point Is to Set "Sustainable Expansion of Corporate Value" As a Management Goal

The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

Can Many Companies that over Years Could Not Suddenly Transform Themselves Thanks to TSE Requests?

Changing Japanese Companies Is Not TSE Request but Inflation that Changes Mindset of All Managers

ROE up Modestly, but ROE Plus DOE Is Expected to Reach a Record High This Fiscal Year

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Examining ROE contribution requires first reducing cash and raising Asset Turnover and Financial Leverage. Also, regarding stock price appreciation, increasing ROE+DOE, which has higher correlation with TOPIX, will be effective.</li>
<li>Stock performance is correlated with higher foreign ownership and Tobin's q, indicating that overseas investors are also more interested in cash-rich, growth policy, dividend policy, policy-shareholdings, treasury-share retirements, AGM/IR disclosures.</li>
<li>TSE's adoption of P/B, made it easier to compare management capabilities with that of other companies. Managers who can't achieve sufficient stock performance will have to seek help from shareholder-returns.</li>
</ul>


Examining ROE contribution requires first reducing cash and raising Asset Turnover and Financial Leverage. Also, regarding stock price appreciation, increasing ROE+DOE, which has higher correlation with TOPIX, will be effective.
Stock performance is correlated with higher foreign ownership and Tobin's q, indicating that overseas investors are also more interested in cash-rich, growth policy, dividend policy, policy-shareholdings, treasury-share retirements, AGM/IR disclosures.
TSE's adoption of P/B, made it easier to compare management capabilities with that of other companies. Managers who can't achieve sufficient stock performance will have to seek help from shareholder-returns.


Managers Should Consider That "TSE's Request" Has Changed the Rules of the Game

TSE Tokyo Price Index TOPIX

Managers Should Consider That "TSE's Request" Has Changed the Rules of the Game