We test the biasedness of unsolicited ratings relative to solicited ratings using the ex post firm performance measured by the long-run stock performance of firms following rating announcements and changes. We find that the announcements of new unsolicited ratings are followed by negative...

The SEC’s NRSRO designation for Japanese credit rating agencies is suitable for examining certification and monitoring effects, as Japanese domestic bond markets are not subject to SEC regulations. We find that the certification increased the market share of new NRSROs (R&I and JCR) compared...

It has been a puzzle why foreign firms obtain credit ratings by global rating agencies such as S&P or Moody's rather than from their home country's rating agencies even though the global raters typically assign lower credit ratings when these foreign firms issue bonds in their home currencies....

Unsolicited ratings are credit ratings of firms that have not requested rating evaluation and therefore do not pay fees. Accordingly, unsolicited ratings are issued solely by the discretion of rating agencies based on public information. Given the controversy surrounding unsolicited ratings...

This study examines the effect of internal monitoring mechanisms on a firm’s environmental and social (ES) performance level, in emerging markets of Korea which has a chaebol-centric governance system. We find a positive relationship between institutional investor holdings, especially pension...

This study examines relative performance evaluation (RPE) for the compensation of CEOs of business groups called “chaebols” in Korea. We find strong evidence of RPE when peers are other member firms in the same business group, particularly when a firm has an established compensation or is...

This study examines relative performance evaluation (RPE) for the compensation of CEOs of business groups called “chaebols” in Korea. We find strong evidence of RPE when peers are other member firms in the same business group, particularly when a firm has an established compensation or is...