Surveys on the use of agency credit ratings reveal that most investors believe that rating agencies are relatively slow …

We use dynamic panel analysis to examine whether credit rating agencies achieve what they claim to achieve, namely …

We use dynamic panel analysis to examine whether credit rating agencies achieve what they claim to achieve, namely …

Using a structural model of default, I derive rating characteristics if ratings are meant tolook ‘through the cycle’ as … opposed to being based on the borrowers’ current condition.The through-the-cycle method, which is employed by most rating … power is low. Though not predictable in the usual sense, rating changesexhibit properties that call for a reconsideration of …

ratios to enforce restrictions on borrowers, there is likely to be increased pressure on rating agencies to cater to borrower … incentives. I investigate whether the explicit use of ratings in contracts affects rating agencies' incentives to issue more …. I examine whether, ceteris paribus, rating agencies are more likely to cater to borrowers when PP agreements use ratings …

Generally, information provision and certification have been identified as the major economic functions of rating … agencies. This paper analyzes whether the watchlist" (rating review) Instrument has extended the agencies' role towards a …, we find that the overall information content of rating action has indeed increased due to the introduction of the …

Generally, information provision and certification have been identified as the major economic functions of rating … agencies. This paper analyzes whether the 'watchlist (rating review) instrument has extended the agencies' role towards a … monitoring position, as proposed by Boot, Milbourn, and Schmeits (2006). Using a data set of Moody's rating history between 1982 …

We develop a model of credit rating agencies (CRAs) based on reputation concerns. Ratings a ffect investors' choice and … CRAs raise the probability of default. Furthermore, rating standards tend to be pro-cyclical, while biased CRA …

their policy of reducing rating volatility, which builds on thethough-the-cycle approach and the avoidance of frequent … rating reversals, is beneficial tobond investors. The results also suggest that widely used statistical measures of rating … qualitymay be insufficient to judge the economic value of rating information in specific contexts. …

We analyze a rating agency's incentives to distort ratings in a model with a monopolistic profit maximizing rating … of a firm's bond is known to the firm and observable by the agency, but not by buyers. Firms can choose to get a rating …. The rating agency can reveal a signal of arbitrary precision about the quality of the bond. In contrast to the existing …