Credit rating agencies (CRAs) are less likely and slower to downgrade firms with performance sensitive debt (PSD) if these downgrades increase borrowing costs. This effect is not driven by selection into PSD contracts, borrowers hiding information from CRAs, or by firms about to lose their...

The financial crisis and the ensuing recession have caused a sharp deterioration in public finances across advanced economies, raising investor concerns about sovereign risk. The concerns have so far mainly affected the euro area, where some countries have seen their credit ratings downgraded...

Department: Economics.

Las instituciones financieras globales desempeñan un papel importante en la canalización de fondos entre países y, por lo tanto, en la transmisión de la política monetaria de un país a otro. En este trabajo, estudiamos si dicha transmisión internacional depende de los modelos de negocio...