By Sonja Ryst, Financial Reporter 108 economies around the world implemented 201 business regulatory reforms between June 2011 and May 2012, according to recent research by the World Bank Group’s private sector investment unit the International Finance Corp. Some of these reforms included measures intended to better protect investors. For its report titled “Doing Business [...]
Tag Archives | esg
More Than 100 Countries Pass Reforms Designed to Protect Investors
January 7, 2013 in Corporate Governance, Daily Viewpoint
Liberty Global Avoids Sending Garbage To Landfills
January 2, 2013 in Corporate Governance, Daily Viewpoint
By Sonja Ryst, Financial Reporter Liberty Global Inc. (LBTYA) said recently that around 62% of its total garbage went to landfills in 2011, as the cable operator found other ways to manage much of it. The company recycled more than 2,119 metric tons of its 7,146 metric tons in total waste, according to its first [...]
AGL Discloses Effort To Improve Workplace Gender Equity
December 28, 2012 in Corporate Governance, Daily Viewpoint
By Sonja Ryst, Financial Reporter With a boost from new requirements in Australia, AGL Energy Limited (AGK) noted limited progress this year in its ongoing battle to make workplace policies more amenable to female staff. The Australian energy company said in its 2012 Sustainability Performance Report released this month that women made up 35% of [...]
Samsung Requests Crack Down on Ericsson’s U.S. Sales
December 27, 2012 in Corporate Governance, Daily Viewpoint
By Sonja Ryst, Financial Reporter Samsung Electronics Co., Ltd. (SEO:005930) has requested an investigation of Ericsson Inc. (ERIC)’s compliance with laws intended to combat unfair importing practices and enforce U.S. intellectual property rights at the country’s border, as the two wireless communications companies continue their patent battles. The Korean consumer electronics maker filed a complaint [...]
Weatherford’s CEO Remains In Power
December 13, 2012 in Corporate Governance, Daily Viewpoint
Weatherford International Ltd. (WFT) is shaping up to be a takeover target with accounting issues that wiped out half its market value on the verge of being resolved, Bloomberg reported this week. So far nothing yet has budged the oilfield services company’s CEO Bernard J. Duroc-Danner from power. Mr. Duroc-Danner has managed Weatherford and its [...]
U.S.-Listed Chinese Companies Likely to Go Elsewhere: FT
December 10, 2012 in Corporate Governance, Daily Viewpoint
Last week, the US Securities and Exchange Commission began proceedings against Chinese affiliates of the big auditing firms for refusing to produce audit papers on Chinese companies under investigation for suspected fraud. It looks increasingly likely that Chinese companies listed in the US will have to find a home elsewhere, the Financial Times said. The problem is that [...]
As Researchers Warn of Global Warming, Investors Can Measure Polluters
December 6, 2012 in Corporate Governance, Daily Viewpoint
Rising carbon dioxide emissions make it less likely that global warming will stay below the international goal of 2 °C, according to recent research. Investors can take steps to evaluate which companies emit such pollutants. “A shift to a 2 °C pathway requires immediate significant and sustained global mitigation,” an article in the scientific journal [...]
Kohl’s Corporation Slips and We’re Not Surprised
December 5, 2012 in Corporate Governance, Daily Viewpoint, Ratings Watch
By Damion Rallis, Senior Research Associate With the holiday shopping season in full swing we noticed a recent surge in insider sales and a sharp share price drop at department store operator Kohl’s Corporation (NYSE:KSS) and decided to take a deeper look. While the market was clearly reacting swiftly to the retailer’s disappointing earnings results, [...]
Romney Isn’t The Only Experienced One On Marriott’s Board
December 5, 2012 in Corporate Governance, Daily Viewpoint
Marriott International, Inc. said it appointed W. Mitt Romney to its board. He and many other directors at the Bethesda, Md.-based hotel company have already served for many years. The former presidential candidate and Massachusetts governor sat on Marriott’s board from 1993 to 2002 and from January 2009 to January 2011, the company said in [...]
IN MY OPINION | DaVita Healthcare Partners
December 4, 2012 in AGR, Corporate Governance, Daily Viewpoint, ESG Ratings & Research
By James A. Kaplan, Vice Chair and Chief Executive Less than two weeks ago, GMI Ratings placed DaVita Healthcare Partners (NYSE: DVA) on the Black Swan Risk List (BSRL) of North American companies with the most aggressive accounting practices and the highest risk of a major drop in share price. GMI Ratings’ forensic accounting model [...]
Groupon’s Management Fails to Regain Credibility With the Market
November 30, 2012 in Corporate Governance, Daily Viewpoint
Groupon Inc. (GRPN) stock prices were falling early Friday after media reported that a board meeting about CEO Andrew Mason’s performance ended without any announcement of plans to replace him. The development is a recent example of continuing market skepticism about the daily deal website in the wake of questions about its accounting. “The board [...]
Held From U.S. Contracts, BP Still Shows Environmental Problems
November 29, 2012 in Corporate Governance, Daily Viewpoint
The U.S. Environmental Protection Agency announced on Nov. 28 that it has temporarily suspended BP from new U.S. government contracts, citing the energy group’s “lack of business integrity” with regard to the Deepwater Horizon explosion. Since the disaster in 2010, BP continues to show signs of problems ranging from its experiencing additional events that hurt the environment [...]
3D Systems Corporation: Doth They Protest Too Much?
November 28, 2012 in AGR, Corporate Governance, Daily Viewpoint, ESG Ratings & Research, Ratings Watch
By Damion Rallis, Senior Research Associate While the share price at 3D Systems Corporation (NYSE:DDD) continues its steady and impressive climb—up more than 200% since last November—a closer look at the company’s governance profile reveals several troubling indications that 3D Systems could be due for a reversal. Not only has the 3-D printing company been [...]
Slammed Again For Practices, Samsung’s Ownership Still Problematic
November 27, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Critics recently protested against Samsung Electronics Co., Ltd. (SEO:005930)’s alleged patent infringement and misuse of Chinese labor. We continue to warn about problems with the Korean consumer electronics giant’s corporate governance such as its ownership structure. The telecom network equipment maker Ericsson said it was suing Samsung for patent infringement after two years of talks [...]
Does GMI Ratings Give Everyone an F?
November 26, 2012 in AGR, Daily Viewpoint, ESG Ratings & Research
By Paul Hodgson – Chief Research Analyst Introduction Like its predecessor firms (The Corporate Library, GovernanceMetrics International, and Audit Integrity), GMI Ratings prides itself on identifying potential problems that stem from poor management practices. The historic correlation between those practices and negative events allows GMI Ratings to predict the likelihood of future events that can [...]
GMI Ratings Governance Update | Moody’s Corp.
November 20, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Moody’s Corp. (MCO) could better safeguard itself from the business conduct failures that the Securities and Exchange Commission discovered in its second annual review of nine ratings agencies. The New York firm needs to take more steps to prevent its senior managers from abusing their powers. Without specifying names, the U.S. regulator said on Nov. [...]
GMI Ratings Governance Update | Wal-Mart Stores, Inc.
November 16, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Wal-Mart Stores, Inc. (WMT) confirmed this week that a previously disclosed investigation into bribery at its overseas units expanded into markets including Brazil, China and India. While it’s positive that the retailer is taking steps to examine allegations of such behavior, Wal-Mart could do more to improve the strength of the board that supervises such [...]
GMI Ratings Governance Issue | Vodafone Group Plc
November 15, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Vodafone Group Plc (VOD) adjusted its earlier estimates about the value of operations in Spain and Italy downward by £5.9 billion. While the British mobile phone giant clearly had no power to prevent the European crisis, its financial statements have contained warning signs that its managers tend to present their performance in the best possible [...]
GMI Ratings Governance Update | Olympus Corp.
November 13, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Olympus Corp. (OCPNF.PK) said it returned to a profit during the six months ended September 30, but the equipment maker also warned that it will sell fewer digital cameras than expected. Investors should prepare for the possibility of more surprises down the road. Olympus earned ¥8.015 billion during the six month period – boosted by ¥15.887 [...]
Bogus Accounting Hides Real Risks
November 12, 2012 in Corporate Governance, Daily Viewpoint, Disclosure
By James A. Kaplan and Lev Janashvili “In the long run managements stressing accounting appearance over economic substance usually achieve little of either.” ― Warren Buffett In the current issue of Forbes magazine, Francine McKenna’s thoughtful article (Lying with Numbers) provides a timely reminder that bogus accounting remains a widespread practice at public companies. Enabled in [...]