GMI Ratings

Business Insider: Watching For Fraud Red Flags Can Seriously Boost Portfolio Returns

pelliott — Tue, 18 Jun 2013 20:17:36 +0000

…A new report from GMI Ratings shows that investors can significantly boost returns simply by looking out for certain red flags. When GMI eliminated the 25% of companies in the Russel 3000 index that scored the lowest on its fraud detection metrics, portfolio returns rose from 7.6% to 9.8% over a 10 year period, a 29% boost…

Article

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Livevol Options Blog: Bank of America (BAC) – Stock Rallies 150% in 1.5 Years; But Why and How? We Used to Call this Stock Phillip Morris… We Used to Call this Corruption.

pelliott — Tue, 18 Jun 2013 19:40:37 +0000

Article by Ophir Gottlieb

…Bank of America (BAC) routinely denied qualified borrowers a chance to modify their loans to more affordable terms and paid cash bonuses to bank staffers for pushing homeowners into foreclosure, according to affidavits filed last week in a Massachusetts lawsuit. “We were told to lie to customers,” said Simone Gordon, who worked in the bank’s loss mitigation department until February 2012. “Site leaders regularly told us that the more we delayed the HAMP [loan] modification process, the more fees Bank of America would collect….”

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Journal of Forensic & Investigative Accounting: Major Financial Reporting Frauds of the 21st Century

pelliott — Tue, 18 Jun 2013 17:43:00 +0000

Major financial reporting frauds of the 21st Century are studied in this paper for lessons learned and strategies to reduce the incidence of such frauds in the future. As Howard Schilit observed: “I read recently that the one lesson we have learned from history is that we have learned nothing from history….

Report

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Forbes: How Corporate Fraud Costs You Money: Four Red Flags

pelliott — Mon, 17 Jun 2013 21:06:04 +0000

…“Rigorous statistical research continues to demonstrate that corporate accounting fraud remains common and costly,” said James Kaplan, author of the study and vice chair of GMI Ratings. “Aside from tangibly harming the shareholders of fraudulent and even non-fraudulent firms, misleading accounting and disclosure practices weaken the integrity of capital markets; they further obscure issuer risks and undermine investors’ trust in the reliability of mandated corporate filings….”

Article

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CFO Journal: The Morning Ledger: Corporate Taxes on G-8 Agenda

pelliott — Mon, 17 Jun 2013 17:45:56 +0000

The Wall Street Journal CFO Network conference kicks off today in Washington, D.C. This year’s event features a slate of key government officials and top executives from a whole range of big companies. Speakers include SEC Chairman Mary Jo White, former Fed Chairman Alan Greenspan, White House Council of Economic Advisers Chairman Alan Krueger, former FDIC head Sheila Bair and Nell Minow, co-founder of GMI Ratings….

Article

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The Impact of Fraud on Shareholder Value: The Price You Do Not Have to Pay

jbrown — Mon, 17 Jun 2013 12:41:43 +0000

By James A. Kaplan, Vice Chair, GMI Ratings

Rigorous statistical research continues to demonstrate that corporate accounting fraud remains common and costly. Aside from tangibly harming the shareholders of fraudulent and even non-fraudulent firms, misleading accounting and disclosure practices weaken the integrity of capital markets; they further obscure issuer risks and undermine investors’ trust in the reliability of mandated corporate filings. In this report, James A. Kaplan shares his thoughts on how investors can use validated methods of fraud detection to improve portfolio performance.

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Crain’s New York Business: Les Moonves gets more

pelliott — Mon, 17 Jun 2013 00:42:27 +0000

Someday, public companies may have to disclose the eye-popping gap between CEO pay and the average employee’s. Until then, investors must focus on the difference between a CEO’s compensation and other executives’ in the C-suite. Twelve of the largest companies in the New York area pay their CEOs five times or more the median compensation of other named top executives in proxy statements, according to data compiled by and provided to Crain’s by GMI Ratings, a corporate governance research firm….

Article

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New York Daily News: CBS boss Leslie Moonves’ pay is out of this world, even for CEOs

pelliott — Sun, 16 Jun 2013 17:40:25 +0000

…The broadcast network’s net income increased 6% and it has claimed the top spot among major television channels in the key 18-to-49-year-old demographic. Ralph Lauren came in second, earning $36.3 million in 2012, according to just-compiled data by GMI Ratings, an advisory firm….

Article

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The Guardian: Labour plans massive increase in fines for corporate fraud

pelliott — Fri, 14 Jun 2013 20:34:34 +0000

Fines for corporate fraud will rise massively and companies will become liable for employees’ misdeeds under Labour plans to tackle white collar crime. The shadow attorney general, Emily Thornberry MP, unveiled proposals from the party’s policy review aimed at increasing the Serious Fraud Office’s (SFO) resources and introducing tougher penalties…

Article

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Forbes: Women are Powering Their Way Up in Society

pelliott — Fri, 14 Jun 2013 16:56:05 +0000

… Corporate boards have less than 7 percent women, according to GMI Ratings’ Women on Boards Survey 2013, which sampled 89 Indian companies with a market cap of over $1 billion. This is marginally lower than the percentage in other developing countries. The survey says that half the boards have at least one woman director. That’s not enough diversity, though. And the gender scorecard could look worse once we get to companies lower down the list….

Article

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