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.

Isn't the Debate over the Amendment to the Companies Act Failing to Learn from past Mistakes?

What Are the Reasons Japanese Companies Cannot Overcome the Drawbacks of Traditional Management?

This Revision to Corporate Governance Codes Could Be Perceived as Defending Outdated Practices

The Effectiveness of BOD Is the Most Critical Factor in Implementing Initiatives that Create Value

Improving Capital Profitability Requires Bridging Gaps Understanding Between Managers and Investors

Is Lagging Among Standard Market Companies Due to Lack of Disclosure or Investor Engagement?

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Given that the simple average ROE is 7.9%, more companies have profitability below their cost of capital. It's overly optimistic to assume that these companies could immediately improve their profitability.</li>
<li>Regardless of whether the company discloses information in response to requests, it should be held accountable for whether it is implementing measures to create value.</li>
<li>Without a shareholder perspective in corporate management, the disclosed measures will not serve the interests of shareholders but will merely be intended to comply with the Tokyo Stock Exchange’s requirements.</li>
</ul>


Given that the simple average ROE is 7.9%, more companies have profitability below their cost of capital. It's overly optimistic to assume that these companies could immediately improve their profitability.
Regardless of whether the company discloses information in response to requests, it should be held accountable for whether it is implementing measures to create value.
Without a shareholder perspective in corporate management, the disclosed measures will not serve the interests of shareholders but will merely be intended to comply with the Tokyo Stock Exchange’s requirements.


The Reason for No Improvement in ROE Was that the past 3 Years Lacked a Shareholder Perspective

TSE Tokyo Price Index TOPIX

The Reason for No Improvement in ROE Was that the past 3 Years Lacked a Shareholder Perspective