A new report confirms an earlier study that correlated poor earnings quality and governance with poor stock performance. RateFinancials found that those "poor" companies saw an 8% drop in their market value last year, while the S&P Index climbed 3%, resulting in a net 11% loss.

"We continue to establish a strong correlations between poor stock performance and companies with questionable eanings quality," RateFinancials President Victor Germack said.