• MethodologyQuantitative Model Driven
• Approachn/a
• Equity Stylen/a
• Report TypesCompany Forensic Accounting and Governance

About the Firm

GMI is an independent risk research firm that provides a statistically modeled assessment of corporate integrity. Founded in 2002 in direct response to the growing number of scandals, lawsuits, and investor losses resulting from fraudulent corporate behavior, the firm identifies potentially high-risk company accounting and governance activity that has been historically correlated to stock price declines, securities class-action litigation, and material financial restatements.

The product of GMI's analysis is a unique risk measure called the AGR® Score. This measure can be used by investors as a way to more effectively manage corporate risk.

Methodology

The firm uses a proprietary methodology that integrates extensive public data channels and advanced statistical modeling techniques to provide deep insight into a company's financial disclosure and governance practices and to expose associated risks. It operates several quantitative models that provide risk ratings. Extensive academic and third-party research has validated the Accounting and Governance Risk (AGR) Score as an effective and independent variable in determining investment returns.

Coverage

GMI forensically analyzes the financial reporting and governance practices of more than 8,500 North American-based publicly traded companies spanning all market capitalizations and industries.

Companies are required to have financial statements filed with the SEC for at least five quarters, including the current quarter in order to have an AGR rating calculated. Publicly traded companies with inactive ratings are classified as Delinquent Filers (no current SEC filings available) or Rating Pending (SEC filing available, but missing or problematic data preventing calculation of AGR.)

What's Provided on Fidelity.com

RISK RATINGS, REPORTS & SCREEN CRITERIA