Firm Says Poor Governance Puts 3 Higher-Education Companies at Risk of 'Outright Failure'

An independent firm that evaluates companies on their financial and corporate-governance practices is warning endowment and pension-fund managers and other institutional investors that three major higher-education companies—the Apollo Group Inc., Corinthian Colleges Inc., and Education Management Corporation—"should be considered very high-risk holdings by investment fiduciaries."

"These are not just poorly governed companies; these are companies that seem to have