- Abnormal accruals
The difference between accrued income and cash flows.
- Abnormal returns
The difference between observed changes in stock price minus the expected return of the stock, adjusted for risk.
An organisation that helps early-stage companies improve.
Readiness or duty of individuals and communities to accept responsibility for their actions.
- Accounting Manipulation
Purposeful misapplication of generally accepted accounting standards to inflate reported financial results.
- Accounting metrics
A set of quantitative and/or qualitative accounting metrics intended to measure performance on a topic.
- Accounting Restatement
Disclosure and correction of previously issued financial statements.
- Active Ownership
Actively engaging with the managers and boards of directors of investee companies on business strategy and execution, including specific sustainability issues and policies.
- Activist Investor
Investors who try to use an ownership position to actively pursue governance changes at a corporation.
- Administration, Going into
When a company becomes insolvent and is put under the management of a licensed practitioner.
- Adverse impacts
An asset manager’s Principal Adverse Impacts Statement demonstrates the impact that investment decisions have on sustainability factors.
- Agency Cost
An internal company expense incurred by an agent taking action on the principal’s behalf.
- Agency Issues / Problems
A conflict of interest between two parties.
- Aligned Incentives (Alignment of Incentives)
In business terms, where the corporate goals and related compensation of persons in management (especially senior executives) are aligned with the interests of shareholders.
- Anglo-Saxon Model
A term used to describe governance models prevalent in the United Kingdom and the United States.
- Annual General Meeting (AGM)
The yearly meeting of a company’s shareholders.
The act of issuing policies, regulations or procedures to inhibit bribery, defined as the offer or request of an item of value to induce the decisions and/or actions of persons subject to public, legal, or ethical responsibilities.
The act of issuing policies, regulations or procedures to inhibit corruption, defined as the use of power for individual benefit.
- Apply and Explain
A regulatory approach that assumes organisations comply with a provision of a Code and requires them to explain how their practices achieve this compliance.
- Apply or Explain
A regulatory approach that allows organisations to explain publicly why they do not comply with a provision of a Code.