BDTI/METRICAL Joint Research Update: “CG Practice and Value Creation Linkage”

BDTI and METRICAL are continuing to collaborate on finding “linkages between CG practice and value creation.” METRICAL has recently updated the results of our analysis at the end of October 2019 for about 1,800 listed companies representing a market capitalization of more than 10 billion yen.

In this update, we see that the number of companies with a majority of independent directors on the board decreased by one from the previous month, to 84 companies (85 companies including Toshiba).

Secondly, a significant positive correlation was found between board practices and value creation in the following areas:

  • (Positive correlation with actual ROE)
    • Ratio of female directors and results
    • Incentive (compensation) plan factors and achievements
  • (Positive correlation with actual ROA)
    • Adviser/Consultant Factor and Tobin’s q
    • Ratio of independent directors and Tobin’s q
  • (Positive correlation with actual Tobin’s q)
    • Incentive (compensation) plan factor
    • Advisory and advisor factors

For more information, please refer to the following website.

Download the full report here.

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