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.

Why Aren’t More AGMs Being Held Online?

For Small to Med-Sized Companies, the Resolution of Cross-Shareholdings Is Just Getting Started

Will the Legal Reform of Substantial Shareholder Disclosure Change the Voting Practices?

With Passive Funds Dominating Markets Today, Proxy Voting Tends to Be Limited to Formalities

Stricter Voting Criteria for Domestic Asset Managers May Aim to Enhance Value Through Engagement

Is Progressive Dividend Distribution the Result of Half-Baked Cash Allocation?

The Data Also Shows that Companies with Low Stock Valuations Are Increasingly Using Share Buybacks

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>From the perspective of voting criteria used by institutional investors, the 8% threshold for three-year average ROE still seems to be slightly too high as a hurdle for smaller-cap companies.</li>
<li>Rather than being hindered in improving ROE by policy-held shares, the more serious problem is the risk that management won't act in the best interests of shareholders, shielded by cross-shareholdings.</li>
<li>It's not “TSE's request” or Corporate Governance Code that will prompt management to change their ways and begin taking these issues seriously; only proxy voting can change management’s mindset.</li>
</ul>


From the perspective of voting criteria used by institutional investors, the 8% threshold for three-year average ROE still seems to be slightly too high as a hurdle for smaller-cap companies.
Rather than being hindered in improving ROE by policy-held shares, the more serious problem is the risk that management won't act in the best interests of shareholders, shielded by cross-shareholdings.
It's not “TSE's request” or Corporate Governance Code that will prompt management to change their ways and begin taking these issues seriously; only proxy voting can change management’s mindset.


Stricter Voting Guideline by Domestic Investors Will Push Managers to Return to Basics of Management

TSE Tokyo Price Index TOPIX

Stricter Voting Guideline by Domestic Investors Will Push Managers to Return to Basics of Management