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.

Companies Unable to Escape the Curse of the Unfortunate History of Misunderstanding “Cost of Equity”

Financial Institutions Should Accelerate the Reduction of Their Policy Shareholdings

Criticism of Shareholder Proposals from Activist Investors Is a Comforting Word for Management

Will Management that Incorporates Cost of Capital Be Fully Implemented 7 Years from Now, in 2028?

How Long Will the ‘Parent-Subsidiary Listing Prolongation Scheme’ Work?

Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement

Now Is Time to Increase the Number of Female Directors so that They Can Contribute to Value Creation

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Companies competing in global market are often compared in profitability and practices with global competitors, so they would have moved to reduce cross-shareholdings earlier than companies focused on domestic market.</li>
<li>There is little improvement in capital profitability, but lower number of cross-held shares will reduce the number of companies whose proxy votings are influenced by cross-shareholdings, which will improve governance.</li>
<li>Companies that maintain top management despite decline in the founding family's stake tend to be targets of activist investors because they have problems with both corporate governance and capital profitability.</li>
</ul>


Companies competing in global market are often compared in profitability and practices with global competitors, so they would have moved to reduce cross-shareholdings earlier than companies focused on domestic market.
There is little improvement in capital profitability, but lower number of cross-held shares will reduce the number of companies whose proxy votings are influenced by cross-shareholdings, which will improve governance.
Companies that maintain top management despite decline in the founding family's stake tend to be targets of activist investors because they have problems with both corporate governance and capital profitability.


Many Companies that Have Seen Their Founding Family's Stake Decline but Retain CEO Have Challenges

TSE Tokyo Price Index TOPIX

Many Companies that Have Seen Their Founding Family's Stake Decline but Retain CEO Have Challenges