Add to ORKGWe develop an equilibrium theory of credit rating. By influencing rational creditors, ratings affect firms ’ probability of default, which in turn affects ratings. In equilibrium, credit rating is pro-cyclical and magnifies underlying market conditions. Moreover, biased incentives of credit rating agencies are ultimately self-defeating – a bias in favor of issuers raises the incidence of default
This paper investigates the information in corporate credit ratings. If ratings are to be informativ...
Abstract: The collapse of so many AAA-rated structured …nance products in 2007-2008 has brought rene...
Credit rating agencies play a crucial role in financial markets. There are two competing views regar...
We develop an equilibrium theory of credit rating in the presence of rollover risk. By influencing r...
We develop a model of credit rating agencies (CRAs) based on reputation concerns. Ratings affect inv...
We develop a model of credit rating agencies (CRAs) based on reputation concerns. Ratings affect inv...
Abstract In this paper, we provide a novel rationale for credit ratings. The rationale that we propo...
In this paper, we provide a novel rationale for credit ratings. The rationale that we propose is tha...
Rating agencies are often criticized for being biased in favor of borrowers, for being too slow to d...
A credit rating is technically an ‘opinion ’ on the relative degree of risk associated with timely p...
Includes supplementary materials for the online appendixWe develop a framework to explore the effect...
The paper asks if credit rating agencies have incentives to misrepresent their clients’ credit quali...
We develop a theoretical model to analyse the effect of competition on the conflict of interest aris...
The market prices of securities are heavily dependent on their credit ratings, which can in turn inf...
The market prices of securities are heavily dependent on their credit ratings, which can in turn inf...
This paper investigates the information in corporate credit ratings. If ratings are to be informativ...
Abstract: The collapse of so many AAA-rated structured …nance products in 2007-2008 has brought rene...
Credit rating agencies play a crucial role in financial markets. There are two competing views regar...
We develop an equilibrium theory of credit rating in the presence of rollover risk. By influencing r...
We develop a model of credit rating agencies (CRAs) based on reputation concerns. Ratings affect inv...
We develop a model of credit rating agencies (CRAs) based on reputation concerns. Ratings affect inv...
Abstract In this paper, we provide a novel rationale for credit ratings. The rationale that we propo...
In this paper, we provide a novel rationale for credit ratings. The rationale that we propose is tha...
Rating agencies are often criticized for being biased in favor of borrowers, for being too slow to d...
A credit rating is technically an ‘opinion ’ on the relative degree of risk associated with timely p...
Includes supplementary materials for the online appendixWe develop a framework to explore the effect...
The paper asks if credit rating agencies have incentives to misrepresent their clients’ credit quali...
We develop a theoretical model to analyse the effect of competition on the conflict of interest aris...
The market prices of securities are heavily dependent on their credit ratings, which can in turn inf...
The market prices of securities are heavily dependent on their credit ratings, which can in turn inf...
This paper investigates the information in corporate credit ratings. If ratings are to be informativ...
Abstract: The collapse of so many AAA-rated structured …nance products in 2007-2008 has brought rene...
Credit rating agencies play a crucial role in financial markets. There are two competing views regar...