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.

CG Watch, Which Made Great Strides Will Be Tested Next Time for Substantial Governance Improvements

Size of Market Capitalization Will Make a Difference in Corporate Governance and Value Creation

Is the Deflationary Mindset of Managers Still Prevailing?

TSE's Request for Disclosure About Parent-Subsidiary Listings Is an Improvement, Not a Solution

Still Many "Parent-Subsidiary Listings" Keep to Provide Investment Opportunities for Inefficiencies

MBOs Would Open the Door to Investment for Companies that Weren’t Invested for Fear Of "Value Trap"

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>It’s no surprise that some companies consider the dissolution of parent-subsidiary listings as a swift and effective measure to raise ROE. However, not every listed subsidiary will be TOB.</li>
<li>TOB of a high-profitability subsidiary can have significant impact on both the denominator and numerator of the parent company's ROE because it uses more cash and will improve profit margins.</li>
<li>Even if the "significance of parent-subsidiary listings" is disclosed, few investors believe that the listed subsidiary's independence is fully ensured, and the dissolution of parent-subsidiary listings will eventually follow.</li>
</ul>


It’s no surprise that some companies consider the dissolution of parent-subsidiary listings as a swift and effective measure to raise ROE. However, not every listed subsidiary will be TOB.
TOB of a high-profitability subsidiary can have significant impact on both the denominator and numerator of the parent company's ROE because it uses more cash and will improve profit margins.
Even if the "significance of parent-subsidiary listings" is disclosed, few investors believe that the listed subsidiary's independence is fully ensured, and the dissolution of parent-subsidiary listings will eventually follow.


ROE and Valuations of Japanese Stocks Will Improve Through Dissolution of Parent-Subsidiary Listings

TSE Tokyo Price Index TOPIX

ROE and Valuations of Japanese Stocks Will Improve Through Dissolution of Parent-Subsidiary Listings