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.

"TSE's Request” and Dissolution of Cross-Shareholdings Are Behind the Increase in Share Repurchases

Key to Look Carefully to See if What Is Disclosed Is Consistent with Profitability and Other Results

Slow Policy Shareholdings Reduction Is Similar Backdrop to Unclear Nomination Process for Directors

Amidst Changes in Purpose of Policy Shareholdings, We Should Note Whether They Are Really Decreasing

Not Many Companies Have Implemented Full-Scale Improvements in Return on Capital

Focus on Cash Flow Recovery from Investments as Planned, as Well as Appropriate Cash Allocation

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Business portfolio reforms are lagging and improving profitability, the driver of ROE, will take more time. Further Reducing policy shareholdings and cash on hand are needed to improve capital profitability.</li>
<li>In days of cross-shareholdings, management tended to be less conscious of the goal of sustainable growth in shareholder interests because they need not listen to opinions of other minority shareholders.</li>
<li>Cross-Shareholdings have decreased, and management is now required to be more conscious of capital profitability. ”TSE's request” will hopefully prevent this change from going backwards.</li>
</ul>


Business portfolio reforms are lagging and improving profitability, the driver of ROE, will take more time. Further Reducing policy shareholdings and cash on hand are needed to improve capital profitability.
In days of cross-shareholdings, management tended to be less conscious of the goal of sustainable growth in shareholder interests because they need not listen to opinions of other minority shareholders.
Cross-Shareholdings have decreased, and management is now required to be more conscious of capital profitability. ”TSE's request” will hopefully prevent this change from going backwards.


Reducing Cross-Shareholdings Returns Companies to Basics of Sustained Growth in Shareholder Returns

TSE Tokyo Price Index TOPIX

Reducing Cross-Shareholdings Returns Companies to Basics of Sustained Growth in Shareholder Returns