Mariano, Beatriz - In: Journal of Banking & Finance 36 (2012) 6, pp. 1616-1626
monopoly, the rating agency may ignore private information and issue a rating that conforms to public information. Under some … has incentives to contradict public information as a way to pretend that it holds precise private information. Moreover … firms. In the model, rating agencies seek to maximize their reputation and protect their market power. They observe public …