AGR Analytics

GMI Ratings’ proprietary Accounting and Governance Risk (AGR®) ratings on nearly 29,000 companies worldwide have been shown to be predictive of adverse events such as securities class action litigation, financial restatements, and SEC enforcement actions. In short, aggressive accounting behavior and risky corporate governance practices increase the likelihood of negative events.

Key characteristics of our AGR ratings include:

  • Broadest Coverage – We publish our proprietary AGR ratings on nearly 29,000 companies, including over 8,700 North American companies, 4,300 Western European companies, 3,400 Asia‐Pacific companies, 3,300 Japanese companies, and 9,000 emerging market companies.
  • Coverage of Key Risk Factors — AGR scores are based on discrete risk factors organized into categories such as revenue recognition, expense recognition, asset-liability valuation, governance risks and high-risk events.
  • Simple and Consistent Quantification – The AGR rating is expressed in two ways: as a percentile score ranging from 1 to 100, and in corresponding categories ranging from Conservative to Very Aggressive.
  • Specialized Applications – GMI Ratings’ Financial Distress Risk Model*, Litigation Risk Model*, and Forensic Alpha Model are primarily driven by AGR, combined with other factors.

*The Litigation Risk Model is not available for emerging market companies, and the Financial Distress Model is not available for financial institutions.

AGR Video

AGR 3.0 White Paper

AGR Emerging Markets White Paper

Lit Model for Website