Relationship Between Audit Opinion And Credit Rating: Evidence From Korea

On the Relationship between Credit Rating Announcements and Credit Default Swap Spreads for European Reference Entities

Previous research suggests that credit rating announcements by Moody’s are anticipated by participants in the credit default swap market. In particular, it is argued that downgrades and negative outlook reports do not contain significant information, but there seems to be anticipation of both types of ratings announcements. In this paper, we examine credit default swap spread changes conditiona...

Dynamic Linkages between Exchange Rates and Stock Prices: Evidence from Iran and South Korea

  The main purpose of present study is to analyze the relationship between stock and exchange markets in two Asian countries, Iran and South Korea. A monthly time series of stock price and exchange rate are used over the period 2002: 05 - 2012: 03. The data is collected from the Central Bank of each country and WDI. The calculated stock return and real exchange rate change are used in analysis....

The Credit Rating Game: Evidence from a Strategic Game Model

This paper empirically analyzes the effect of competition on rating quality under the "issuerpay" compensation scheme. Using hand-collected data of collateralized debt obligations (CDOs), we specify the competition among credit rating agencies with a discrete game framework and test its influence on the rating quality. We find that competition raised the probability of choosing lenient rating b...

Korea- Italy Workshop on Membranes: A Long Relationship and Friendship between Korea and Italy

Abnormal Audit Fees and Audit Opinion – Further Evidence from China’s Capital Market

The existing literature on audit opinion shopping provides inconsistent evidence on whether such shopping has any association with abnormal audit fees. In this paper, we hypothesize that firms engage in audit opinion shopping and pay an abnormal audit fee only when their degree of accounting quality is low. To examine the issue, we group firms on the basis of their change in return on assets (R...