Bannier, Christina E.; Behr, Patrick; Güttler, Andre - In: Review of Finance 14 (2010) 2, pp. 263-294
This paper examines why unsolicited ratings tend to be lower than solicited ratings. Both self-selection among issuers and strategic conservatism of rating agencies may be reasonable explanations. Analyses of default incidences of non-U.S. borrowers between January 1996 and December 2006 show...