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.

Slightly More than the Annual IPOs, 119 Companies Newly Applied for Transitional Measures This Year

Common Attitudes Toward IPOs Are Found in Parent-Subsidiary Listings

Transitional Measures Will End in 2-3 Years, but Will Prime Market Listing Criteria Remain the Same?

The Postponement of the Parent-Subsidiary Listing Issue Provides Further Investment Opportunities

Expect Gradual Improvement in the Quality of Listed Companies as More Companies Go Private

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>There are two possible ways to improve the quality of the TSE: one is to exit the market and the other is to improve quality in existing companies.</li>
<li>While few companies are still exiting through de-listing, fewer companies will migrate to other markets going forward, so the quality of existing listed companies must be improved.</li>
<li>Two years after the “TSE's request,” the number of companies with P/Bs of less than 1x has not yet noticeably decreased, indicating that quality improvement is still a ways off.</li>
</ul>


There are two possible ways to improve the quality of the TSE: one is to exit the market and the other is to improve quality in existing companies.
While few companies are still exiting through de-listing, fewer companies will migrate to other markets going forward, so the quality of existing listed companies must be improved.
Two years after the “TSE's request,” the number of companies with P/Bs of less than 1x has not yet noticeably decreased, indicating that quality improvement is still a ways off.


With Transitional Measures Ending, Improving the Quality of Existing Listed Companies Will Be Key

TSE Tokyo Price Index TOPIX

With Transitional Measures Ending, Improving the Quality of Existing Listed Companies Will Be Key