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.

Japanese Stocks, Despite Liquidity Challenges, Offer Many Investment Targets for Activist Investors

Foreign Investors' Net Buy in 2025 May Lead to Companies Showing Management Changes Emerging in 2026

Stocks Rally Amid Higher Bond Yields and Weaker Yen Is Testing if It Reflects Real Profit Growth

Will Strengthened Disclosure Rules and Tax Incentives Drive Growth Investment?

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

Will Companies Change with Cash Allocation Disclosures that Don't Allow Copy-And-Paste Solutions?

For Both the Company and Investors, Pre-Negotiation Process as SR Is Becoming Increasingly Important

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The root cause of companies hoarding cash lies in management's lack of understanding of corporate objectives, which prevents them from identifying growth opportunities and leaves them sitting on cash reserves.</li>
<li>While the revised Corporate Governance Code has drawn attention to cash allocation, merely implementing ad hoc cash allocation without understanding its essence will not create value.</li>
<li>Some companies generate strong cash flow, resulting in cash piling up on balance sheets. Investors highly value companies with stronger cash flow. This is the answer to the TSE's request.</li>
</ul>


The root cause of companies hoarding cash lies in management's lack of understanding of corporate objectives, which prevents them from identifying growth opportunities and leaves them sitting on cash reserves.
While the revised Corporate Governance Code has drawn attention to cash allocation, merely implementing ad hoc cash allocation without understanding its essence will not create value.
Some companies generate strong cash flow, resulting in cash piling up on balance sheets. Investors highly value companies with stronger cash flow. This is the answer to the TSE's request.


The Response to the Tokyo Stock Exchange's Request (To Raise P/B) Has Already Been Given

TSE Tokyo Price Index TOPIX

The Response to the Tokyo Stock Exchange's Request (To Raise P/B) Has Already Been Given