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.

Many Companies Still Miss Opportunities to Deepen Investors' Understanding of Business Strategies

With Many Parent/Founder-Family Companies, Effective Succession Planning Is a Difficult Task

Will Strengthened Disclosure Rules and Tax Incentives Drive Growth Investment?

Recent Stock Price Rise May Be Due to Expectation for Greater Shareholder Returns Rather than Growth

It Is Essential for Investors to Keep Raising Their Voices to Improve Corporate Governance

Companies Still Prioritize Compliance with the TSE over Consideration for Shareholders Interest

Investors Are Less Interested in Companies that Generate Little Cash Despite Shareholder Returns

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Even as more companies shifted to cash flow-focused management, their cash reserves remained stubbornly high, and few announced cash allocation policies. Finally, cash reserves began to decline—driven by TSE's request.</li>
<li>ROE and P/B of companies that disclosed in response to TSE's request haven’t improved. Consequently, the strategic intent behind share buybacks appears weak and isn't being well received by investors.</li>
<li>The decision to veer away from increasing cash reserves is the first step. How long will it take before the next move emerges to improve capital profitability and generate value?</li>
</ul>


Even as more companies shifted to cash flow-focused management, their cash reserves remained stubbornly high, and few announced cash allocation policies. Finally, cash reserves began to decline—driven by TSE's request.
ROE and P/B of companies that disclosed in response to TSE's request haven’t improved. Consequently, the strategic intent behind share buybacks appears weak and isn't being well received by investors.
The decision to veer away from increasing cash reserves is the first step. How long will it take before the next move emerges to improve capital profitability and generate value?


The Key Is when the Next Move Will Come that Steers Away from Increasing Cash on Hand

TSE Tokyo Price Index TOPIX

The Key Is when the Next Move Will Come that Steers Away from Increasing Cash on Hand