Avoiding the rating bounce: why rating agencies are slow to react to new information
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چکیده
منابع مشابه
Avoiding the Rating Bounce: Why Rating Agencies Are Slow to React to New Information
Rating agencies state that they take a rating action only when it is unlikely to be reversed shortly afterwards. Based on a formal representation of the rating process, I show that such a policy provides a good explanation for the empirical evidence: Rating changes occur relatively seldom, exhibit serial dependence, and lag changes in the issuers’ default risk. In terms of informational losses,...
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ژورنال
عنوان ژورنال: Journal of Economic Behavior & Organization
سال: 2005
ISSN: 0167-2681
DOI: 10.1016/j.jebo.2003.09.015