Are working remittances relevant for credit rating agencies?
نویسندگان
چکیده
منابع مشابه
The Optimal Regulation of Credit Rating Agencies
Credit rating agencies (CRAs) very often have been criticized for announcing inaccurate credit ratings and are suspected of being exposed to conicts of interest. Despite these objections CRAs remained largely unregulated. Based on Pagano & Immordino (2007), we study the optimal regulation of CRAs in a model where rating quality is unobservable and enforcing regulation is costly. The model show...
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We empirically analyze the effects of the entry into structured finance products of new credit rating agencies on the rigor of ratings. Our setting is unique as we study a period in which the incumbents’ reputation was extremely poor in these assets and the benefit of more fee income from inflating ratings was low. We nevertheless find that the entrants issue systematically more generous rating...
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Both auditors and credit rating agencies have been linked to financial scandals in recent history. In the early 2000’s, several of the “big five” accounting firms issued favorable audit opinions to public companies employing deceptive accounting practices. Some of these companies even committed outright fraud. Once the investing public caught wind of these accounting irregularities, it lost tru...
متن کاملRATING AGENCIES Harold Cole
For decades credit rating agencies were viewed as trusted arbiters of creditworthiness and their ratings as important tools for managing risk. The common narrative is that the value of ratings was compromised by the evolution of the industry to a form where issuers pay for ratings. In this paper we show how credit ratings have value in equilibrium and how reputation insures that, in equilibrium...
متن کاملConnecting Credit Grantors and Credit Requestors: Towards the Electronic Exchange of Rating-Relevant Information
Before granting new credits, banks must gather qualitative and quantitative information about their prospective customers in order to start a rating process which allows them to assess the credit requestor’s risk class. Driven by intense structural changes within the financial industry and as a result of the specifications of the Basle II accord with regard to the rating process, banks are curr...
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ژورنال
عنوان ژورنال: Review of Development Finance
سال: 2011
ISSN: 1879-9337
DOI: 10.1016/j.rdf.2010.10.003