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.

Do Companies Tend to Focus on Shareholder Returns Because They Can't Find Investment Opportunities?

Risk Taking by Managers Is Key, Weather Changing the Game or Creating a New Business

Japanese Managers Have Always Wanted to Distance Themselves from Market Pressures

Overseas Investors Have Done a Great Deal to Improve the Governance of Japanese Companies, But...

Isn't the Best Catalyst to Facilitate MBOs to Increase Market Metabolism?

Could the Turnaround Be Due to a Change in Management?

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>TSE, as market operator, should focus on stimulating the market, not informally meddling in the management of listed companies on matters that are not explicitly stated in the listing criteria.</li>
<li>Much of the reason ROE has not increased is that OP Margin has not increased. Despite gradual unwinding of cross-shareholdings, Total Asset Turnover slide and Financial Leverage remained unchanged.</li>
<li>Increasing OP Margin is prerequisite for ROE to rise. It confirms that the root of the problem is the challenge of using cash for growth investments to create competitive products.</li>
</ul>


TSE, as market operator, should focus on stimulating the market, not informally meddling in the management of listed companies on matters that are not explicitly stated in the listing criteria.
Much of the reason ROE has not increased is that OP Margin has not increased. Despite gradual unwinding of cross-shareholdings, Total Asset Turnover slide and Financial Leverage remained unchanged.
Increasing OP Margin is prerequisite for ROE to rise. It confirms that the root of the problem is the challenge of using cash for growth investments to create competitive products.


What Should a Japanese Company Do to Raise Profit Margin, a Prerequisite for Higher ROE?

TSE Tokyo Price Index TOPIX

What Should a Japanese Company Do to Raise Profit Margin, a Prerequisite for Higher ROE?