Rating firms and sensitivity analysis

Credit Rating Inflation and Firms’ Investment Behavior

Why do potentially inflated credit ratings affect rational, well-informed creditors’ bond investment decisions? What are credit ratings’ effects on firms’ behavior? We resolve these questions by modeling a credit rating agency (CRA) as a certified expert who transmits information to creditors with coordination incentives and dispersed beliefs. In the unique equilibrium, high credit ratings are ...

Credit Rating Inflation and Firms’ Investments

Could inflated credit ratings that provide new information have adverse ex-ante real effects? If so, why? In a debt-rollover game featuring a feedback loop, we show that when the risky projects have high upside returns, the credit rating agency’s (CRA) ex-ante real effects are negative, despite of its positive informational effects. This arises from the CRAs feedback effects: it strategically a...

Sensitivity and uncertainty analysis of sediment rating equation coefficients using the Monte-Carlo simulation (Case study: Zoshk-Abardeh watershed, Shandiz)

The sediment load estimation is essential for watershed management and soil conservation strategies. The sediment rating curve is the most common approach for estimating the sediment load when the observed sediment records are not available. With regard to the measurement errors and the limitation of available data, the sediment rating curve has a degree of uncertainty which should be accounted...

intercultural sensitivity instruction and interfaces among iranian efl learners intercultural sensitivity,language proficiency,ehnic and demograhic backgrounds:an ethnocentrism vs.ethnorelativism perspective

monumental changes occurring on a daily basis have altered the world into a global village of expanding technology and shrinking geography in which preparing language learners for intercultural communication seems to be a sine qua non for modern language education. employing a cross-sectional design in its first phase, this study investigated the intercultural sensitivity and language proficien...

Modeling an Accounting-Based Rating System for Austrian Firms