Do credit rating agencies add to the dynamics of emerging market crises?
نویسندگان
چکیده
منابع مشابه
Barriers and restrictions on the activity of credit rating agencies of Tehran Secutities (in order to develop the capital market)
Abstract Credit ratings reflect the publisher's ability and willingness to fulfill its financial obligations fully and in a timely manner, leading to increased confidence in listed corporations (publishers). The main purpose of the plan is to identify and present the obstacles and limitation...
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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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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...
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What is the information content of firm ratings? We disentangle the relative contribution to firms’ ratings of sovereign risks and individual firms’ performance indicators, reportedly employed by rating agencies. We reach three conclusions. First, sovereign risks’ contribution is disproportionately greater in developing countries vis-à-vis developed countries. Second, even controlling for the “...
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I examine whether rating agencies are more likely to cater to borrowers with rating-based performance pricing agreements (PPrating firms). This study uses data from Moody’s Financial Metrics on agency adjustments to investigate this prediction and exploits an unexpected adverse shock to firms’ credit risk as identification. The evidence is mixed. In the crosssection and for firms experiencing a...
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ژورنال
عنوان ژورنال: Journal of Financial Stability
سال: 2005
ISSN: 1572-3089
DOI: 10.1016/j.jfs.2005.02.005