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.

Reducing Cross-Shareholdings Returns Companies to Basics of Sustained Growth in Shareholder Returns

Facing the Fundamental Issue that Policy Shareholdings Have Delayed Management Improvement Is Key

Overseas Investors' Net Sale of Japanese Stocks Imply Priority of Profit Growth over Share Buybacks

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Dividends are still the mainstay of shareholder returns, but shareholder returns, including share buybacks, became a standard “P/B raising measure,” which is why share buybacks increased on a company-by-company basis.</li>
<li>Share repurchases increased significantly this year as large cross-holding share dissolutions were undertaken through share repurchases. Share buybacks will continue increasing due to share repurchases for dissolution of cross-shareholdings.</li>
<li>Companies that have been reluctant to retire treasury stock are finally moving to do so. This is expected to be a change of the companies.</li>
</ul>


Dividends are still the mainstay of shareholder returns, but shareholder returns, including share buybacks, became a standard “P/B raising measure,” which is why share buybacks increased on a company-by-company basis.
Share repurchases increased significantly this year as large cross-holding share dissolutions were undertaken through share repurchases. Share buybacks will continue increasing due to share repurchases for dissolution of cross-shareholdings.
Companies that have been reluctant to retire treasury stock are finally moving to do so. This is expected to be a change of the companies.


"TSE's Request” and Dissolution of Cross-Shareholdings Are Behind the Increase in Share Repurchases

TSE Tokyo Price Index TOPIX

"TSE's Request” and Dissolution of Cross-Shareholdings Are Behind the Increase in Share Repurchases