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.

ROE Isn't Rising Because Managers Don't Think of the Value of the Company and Meaning of the Listing

Prime Market Is Still the Market with the Most Listed Companies Even After 171 Companies Are Removed

Preparation in Advance for In-Depth Discussions Is Important for Both Investors and Managers

Disclosure of Management Strategies with Cost of Capital and Stock Price in Mind Is Still Limited

Meaningful If "P/B Below 1x" Is a Change of Mindset that Makes Managers Decide to Take an MBO

Policy Shareholdings, if Reduced, Should Be Used for Profitable Investments

% of Female Board Members Is a Measure of a Company's Seriousness About Improving Its Practices

Companies with over 50% Independent Directors Have High Profitability and Stock Valuations

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The average P/B has remained flat since March end, when TSE requested improvements for companies with P/Bs below 1x, and TOPIX has risen in line with the rise in BPS.</li>
<li>Given the lack of progress in improving ROE, companies have many issues to resolve in improving returns through the appropriate allocation of cash and capital.</li>
<li>Since it's no longer possible to show early results simply by leaving it to managers, the use of TOB/MBO will be a shortcut to raising shareholder returns and corporate value.</li>
</ul>


The average P/B has remained flat since March end, when TSE requested improvements for companies with P/Bs below 1x, and TOPIX has risen in line with the rise in BPS.
Given the lack of progress in improving ROE, companies have many issues to resolve in improving returns through the appropriate allocation of cash and capital.
Since it's no longer possible to show early results simply by leaving it to managers, the use of TOB/MBO will be a shortcut to raising shareholder returns and corporate value.


Valuations Will Rise when the Management Changes To "Maximizing Shareholder Interest"

TSE Tokyo Price Index TOPIX

Valuations Will Rise when the Management Changes To "Maximizing Shareholder Interest"