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.

Improvements Have Expired in Criteria Related to the 2019 Corporate Governance Code Revision

Growth Policy Score Improved with the Request to Raise P/B, but Other Criteria Are in the Process

"Danger Past, God Forgotten" How Long Will the Effect of TSE's Request Last?

Facing the Fundamental Issue that Policy Shareholdings Have Delayed Management Improvement Is Key

Can TSE's “Examples of Bad Disclosures” Help Companies Shift to Shareholder-Oriented Management?

Japan Market Attractive for PE Investment Despite Low Profit Growth

FSA Roadmap Is Realistic, but Progress on Scope 3 Disclosures Will Follow the Revision of Guidelines

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The problem with cross-held shares is that management facing shareholders tends to be neglected if they remain protected by a defensive wall rather than a lower return on capital.</li>
<li>The start of mandatory disclosure of policy shareholding policies from FY3/2025 will also help reduce policy shareholdings, which are expected to decrease gradually, but may remain as deemed shareholdings.</li>
<li>To improve capital profitability, profit margins must increase, so restructuring the business portfolio and investing for growth are key. Management changes are required to implement these changes.</li>
</ul>


The problem with cross-held shares is that management facing shareholders tends to be neglected if they remain protected by a defensive wall rather than a lower return on capital.
The start of mandatory disclosure of policy shareholding policies from FY3/2025 will also help reduce policy shareholdings, which are expected to decrease gradually, but may remain as deemed shareholdings.
To improve capital profitability, profit margins must increase, so restructuring the business portfolio and investing for growth are key. Management changes are required to implement these changes.


Reducing Cross-Held Shares Is Precisely What Is Needed to Promote Management Change

TSE Tokyo Price Index TOPIX

Reducing Cross-Held Shares Is Precisely What Is Needed to Promote Management Change