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.

Tracing the Root Causes of Multiple Gaps Between Managers and Investors Leads to a Single Issue

Standard Markets Would Attract More Attention from Investors Without Trading Liquidity Issues

How Long Will This Phase of Increasing the Effectiveness of Shareholder Return Policies Continue?

Since This Revision Solely Seeks Substantive Enhancement, Achieving Effectiveness Will Be Difficult

Financial Institutions Should Accelerate the Reduction of Their Policy Shareholdings

Whether or Not There Is Engagement with Investors Widens the Gap in Management Reform Efforts

The Effectiveness of BOD Is the Most Critical Factor in Implementing Initiatives that Create Value

Improving Capital Profitability Requires Bridging Gaps Understanding Between Managers and Investors

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Even if the prohibition against exerting “pressure to prevent sales” is elevated to a “principle” in the revised Corporate Governance Code, its impact is likely to be limited.</li>
<li>In addition to negatively impacting capital profitability, the bigger problem with cross-shareholdings is the risk that companies may lead to management practices that neglect shareholders’ interests.</li>
<li>Recently, stock prices have often risen following announcements of the sale of cross-held shares. Meanwhile, the improvement in the average ROE of listed companies has stalled.</li>
</ul>


Even if the prohibition against exerting “pressure to prevent sales” is elevated to a “principle” in the revised Corporate Governance Code, its impact is likely to be limited.
In addition to negatively impacting capital profitability, the bigger problem with cross-shareholdings is the risk that companies may lead to management practices that neglect shareholders’ interests.
Recently, stock prices have often risen following announcements of the sale of cross-held shares. Meanwhile, the improvement in the average ROE of listed companies has stalled.


Why Has Capital Profitability Improvement Stalled Despite Progress in Reducing Cross-Holdings?

TSE Tokyo Price Index TOPIX

Why Has Capital Profitability Improvement Stalled Despite Progress in Reducing Cross-Holdings?