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.

Electing Outside Directors as Board Chair Is Direct Path to Making Outside Directors More Effective

There Are Still Many Companies that Fail to Carry Out Both What They Can Do and What They Must Do

The Reason for No Improvement in ROE Was that the past 3 Years Lacked a Shareholder Perspective

We Can’t Expect Companies that Can't Disclose Cash Allocation This Year to Do so Starting Next Year

Why Is Capital Profitability Slow to Improve, Even Though More Board Members Have “Finance Skills”?

Creating Businesses that Generate High Gross Profit Margins Is the Key to Generating Cash Flow

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>In survey conducted by Life Insurance Association of Japan on “Is ROE Exceeding the Cost of Capital?,” the discrepancy in perceptions between companies and investors has drawn attention every year.</li>
<li>With the rise in the cost of capital, there is a risk that ROE could fall below the break-even point—even based on a company’s own calculated “cost of capital.”</li>
<li>The key to achieving “ROE significantly exceeds the cost of capital” is to implement fundamental measures to boost earnings; however, many companies will focus solely on enhancing shareholder returns.</li>
</ul>


In survey conducted by Life Insurance Association of Japan on “Is ROE Exceeding the Cost of Capital?,” the discrepancy in perceptions between companies and investors has drawn attention every year.
With the rise in the cost of capital, there is a risk that ROE could fall below the break-even point—even based on a company’s own calculated “cost of capital.”
The key to achieving “ROE significantly exceeds the cost of capital” is to implement fundamental measures to boost earnings; however, many companies will focus solely on enhancing shareholder returns.


Will Rising Capital Cost Lead to Fundamental Solution Beyond Simply Increasing Shareholder Returns?

TSE Tokyo Price Index TOPIX

Will Rising Capital Cost Lead to Fundamental Solution Beyond Simply Increasing Shareholder Returns?