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.

How Many Companies Will Be Able to Keep up with the Next Revision of the Corporate Governance Code?

Setting the Trading Unit to One Share Is the Quickest Way to Increase Virtual AGMs

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

One of the Clues to Know How Serious a Company Is About Shifting to Management that Creates Value

There Is Also a Difference in Perspective Between Investors and Companies on the Remuneration System

Japan's Governance: Retirement of Treasury Stock and Performance, Corporate Governance

The Gap with Investors' Perspective Stems from Managers Trying to Distance Themselves from Investors

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Data suggests that share buybacks/share cancellations are expected to have positive effect on ROE/ROA, while companies with low valuations increasingly utilize share buybacks as a measure to raise stock prices.</li>
<li>Overseas investors share the value that companies should have business plans for growth and return surplus cash after investment to shareholders. There's gap between investors and companies inn this value.</li>
<li>More effective approach would be to require management to fulfill accountability by explaining fundamentals of returning unused cash to shareholders and disclosing business plans if they wish to retain cash.</li>
</ul>


Data suggests that share buybacks/share cancellations are expected to have positive effect on ROE/ROA, while companies with low valuations increasingly utilize share buybacks as a measure to raise stock prices.
Overseas investors share the value that companies should have business plans for growth and return surplus cash after investment to shareholders. There's gap between investors and companies inn this value.
More effective approach would be to require management to fulfill accountability by explaining fundamentals of returning unused cash to shareholders and disclosing business plans if they wish to retain cash.


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

TSE Tokyo Price Index TOPIX

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