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.

Challenge Is to Simultaneously Reduce Cash on Hand and Achieve Profitability over Cost of Capital

Overseas Investor Engagement Plays a Significant Role in Substantive Governance Enhancements

New Index Distracts from Prime Market Issues While Providing Long/Short Opportunities for Investors

Having Ended Its Traditional Role, TOPIX Faces Several Challenges

Company with US Type of 3 Committees and Independent Director Chairing BOD Is the Litmus Test

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Recognizing the cost of capital and return on capital is an important factor in determining business strategy, but not many companies disclose their cost of capital and specific management vision.</li>
<li>In order to increase the effectiveness of disclosure of the cost of capital, we should consider changing the Corporate Governance Code to require disclosure by prime market listed companies.</li>
<li>JPX Prime 150 Index, which is based on "equity spreads," has begun to be calculated, but it has't attracted much attention since its performance doesn't differ from that of TOPIX.</li>
</ul>


Recognizing the cost of capital and return on capital is an important factor in determining business strategy, but not many companies disclose their cost of capital and specific management vision.
In order to increase the effectiveness of disclosure of the cost of capital, we should consider changing the Corporate Governance Code to require disclosure by prime market listed companies.
JPX Prime 150 Index, which is based on "equity spreads," has begun to be calculated, but it has't attracted much attention since its performance doesn't differ from that of TOPIX.


Ways Should Be Explored to Make Companies More Effective in Disclosing Their Cost of Capital

TSE Tokyo Price Index TOPIX

Ways Should Be Explored to Make Companies More Effective in Disclosing Their Cost of Capital