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GMI Ratings Forensic Alpha Model™: Linearity

GMI’s Forensic Alpha Model™ (FAM) is a quantitative model designed to improve investment performance using forensic accounting and governance data trained on equity returns.  In this second series of model analysis, GMI’s Head of Quantitative Research, Ophir Gottlieb, discusses linearity and illuminates the information coefficient of FAM. Download the analysis.  

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NASDAQ.com: Marten Transport Announces First Quarter Results

..”We are pleased to again be named to Forbes magazine’s list of America’s 100 Most Trustworthy Companies, making us one of only four companies to be named for the fourth time in the last five years surveyed.” GMI Ratings compiled the list for Forbes by evaluating more than 8,000 U.S. exchange-listed companies with market capitalizations […]

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AGR® Risk 50 List Q1 Update

GMI’s Accounting & Governance Risk (AGR®) rating uses a proven quantitative, statistical process to identify accounting items associated with fraudulent financial statements, as well as governance characteristics associated with firms prosecuted for accounting fraud.  As a group, companies with very low AGR ratings have an elevated risk of enforcement action for accounting fraud, have greater […]

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Governance Insight Alert: PacWest and 20 additional companies

On April 8th, mid-cap financial PacWest Bancorp announced the completion of its merger with CapitalSource Inc. However, the merger-related compensation payable to PacWest Bancorp’s executive officers in 2014 drew a strong reaction from company shareholders. Indeed, after 97% support for executive pay plans in 2013, shareholders lent only 47% support to compensation plans in 2014, […]

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Governance Insight Alert: Google and 20 additional companies

As proxy season begins to get seriously under way in many markets, the internet giant Google (GOOG, and now GOOGL as well) gave investors an intriguing demonstration of what a proxy vote is worth. As had been announced, Google last week created a new class of shares – class C, with no voting rights – […]

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Forbes: America’s 50 Most Trustworthy Financial Companies

Earlier this month, Forbes released the 2014 list of the America’s 100 Most Trustworthy Companies, based on data from proprietary ratings provider and investment advisor GMI Ratings. The list included publicly-traded North American companies of all sizes and industries except one: financial companies, more specifically, banks and insurance companies. James Kaplan, director of GMI Ratings, […]

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Governance Insight Alert: Shareholder rights trends and 20 company events

Last week, on the eve of proxy and AGM season – the annual moment when companies are directly accountable to their shareholders – two important figures in the governance and investment world made noteworthy statements regarding shareholder rights and responsibilities. SEC Commissioner Daniel Gallagher, and to a lesser extent Delaware Supreme Court Chief Justice Leo […]

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Governance Insight Alert: Alibaba, Weibo and 19 additional companies

The recently announced IPOs of Alibaba and Weibo, the Chinese service providers, shine a light on the range of global corporate governance practices. While companies’ pursuit of friendly corporate governance standards is sometimes termed a “race to the bottom,” in this case it’s not entirely clear which way is up. Alibaba filed its IPO in […]

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GMI Ratings’ List of America’s 100 Most Trustworthy Companies Featured in Forbes

March 20, 2014, New York, NY – GMI Ratings, the leading provider of research, data and analytics on environmental, social, governance (ESG) and forensic accounting risks affecting the performance of public companies, works with Forbes each year to identify the 100 Most Trustworthy Companies in the U.S. The company developed the ratings to highlight companies […]

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Governance Insight Alert: GLUU, MINI, PKT and 19 additional companies

Glu Mobile, Mobile Mini, and Procera Networks are three more companies that last week adopted bylaw amendments limiting the forum for shareholder litigation to Delaware courts. Since being approved in June 2013 by the Delaware Chancery,  these “exclusive forum” bylaw amendments have been adopted by more than 150 companies over the past year. In almost […]

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The Wall Street Journal: VIDEO: What’s a Good CEO Really Worth?

How much difference does a standout chief executive make compared to a standard one? Is the marketplace for CEO pay truly competitive? Don’t miss the answers to these and other questions in an interactive video interview moderated by Wall Street Journal reporter Theo Francis.  Video Panelists Include:  Nell Minow: Director, GMI Ratings; Jim Barrall: Partner, […]

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Governance Insight Alert: TKA and 21 additional companies

Two examples from last week highlight the range of shareholder activist strategies and tactics. On this side of the Atlantic, we note that beleaguered chain-restaurant owner Darden cancelled its analyst and investor day scheduled for later this month, in the face of noisy operational and balance-sheet activism, together with proxy contest and special-meeting threats, from […]

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Governance Insight Alert: NOVN and 19 other companies

Shareholders showed lingering discontent over pay practices at Novartis AG last week, giving only tepid support for the board and remuneration policies at the company’s AGM on 25 February. Novartis is one of the first high-profile companies to face a shareholder vote since the November ratification of legislation under the Minder Initiative, which mandates binding […]

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Pensions & Investments: More institutions sign up for UNPRI

AQR Capital Management, Babson Capital Management and Cornerstone Capital Management joined 27 other institutional investors in becoming the latest signatories of the United Nations-supported Principles for Responsible Investment, according to a statement Wednesday from the initiative’s governing group. Lexington Partners, Ignis Asset Management and Christian Brothers Investment Services are among other recent signatories. Together they […]

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Governance Insight Alert: Alliance Data Systems and 20 other companies

On February 20, Alliance Data Systems Corporation (NYSE: ADS) disclosed new long-term equity incentive awards for its executives, including about $5.2 million granted to CEO Edward Heffernan. The award by itself is not notable, since the vast majority of incentive awards are granted during the first fiscal quarter. However, few companies choose to disclose these […]

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GMI Ratings Accounting & Governance Risk 50 List

GMI’s Accounting & Governance Risk rating (AGR®) is designed to predict the likelihood of fraud in the securities markets.   As we all know, the number of SEC enforcement actions each year is a very small percentage of the total market.  In most cases, material misrepresentation skates by the SEC’s scrutiny because they are not resourced […]

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Governance Insight Alert: Apple and 20 other companies

The withdrawal of Carl Icahn’s shareholder proposal for an accelerated buyback program at Apple has placed shareholder activism in the spotlight this week. Icahn, who had recently increased his Apple stake by $500 million to over $4 billion, withdrew his proposal following Apple’s disclosure of “opportunistic” and “aggressive” share repurchases to the tune of $14 […]

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The Huffington Post: Large Shareholders Join Forces With Corporate Directors to Defeat Hedge Fund Locusts

By Nell Minow Sam Levenson once observed, “The reason grandparents and grandchildren get along so well is that they have a common enemy.” The same could be said for a new alliance between groups who have often been at odds and more often had no communication at all: large institutional shareholders and corporate directors. A […]

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Governance Insight Alert: CAJ and 20 other companies

Canon Inc. (TYO: 7751; ADR: CAJ) recently announced that it would appoint a pair of outside directors to its board, the first outsiders to serve on the electronics manufacturer’s board.  Long criticized for its insular boards, Japan, Inc. has shown progress of late in improving its governance standards.  This step follows the appointment of three […]

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The Huffington Post: The Financial Meltdown Bailout Guy Has More to Say: Hank Paulson on His New Documentary

By Nell Minow Inevitably, the new film Hank: Five Years from the Brink, with former Treasury Secretary Henry Paulson, will be compared to Errol Morris’ Oscar-winning documentary, The Fog of War: Eleven Lessons from the Life of Robert S. McNamara. Both are serious, thoughtful, probing, candid, and revealing interviews with men who are looking back […]

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