Purpose: The purpose of this article is to assess whether having a creditworthiness assessment from more than one credit rating agency by issuers green debt instruments affects the number issues and average amount issued. This objective was achieved through process analysis ratings assigned agencies. Methodology: Due complexity data, mixed research methods were used such as observation, analysi...

In this article, we propose a longitudinal multivariate model for binary and ordinal outcomes to describe the dynamic relationship among firm defaults credit ratings from various raters. The latent probability of default is modelled as process which contains additive firm-specific effects, systematic factor representing business cycle idiosyncratic observed unobserved factors. joint set-up also...

Corporate credit rating is an analysis of risks withina corporation, which plays a vital role during the management financial risk. Traditionally, assessment process based on historical profile corporation usually expensive and complicated, often takes months. Therefore, most corporations, duetothelack in money time, can’t get their own level. However, we believe that although these corporation...

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...

One of the issues that the Basel Accord highlighted was that though techniques for estimating the probability of default and hence the credit risk of loans to individual consumers are well established, there were no models for the credit risk of portfolios of such loans. Motivated by the reduced form models for credit risk in corporate lending, we will seek to exploit the obvious parallels betw...

Credit rating agencies (CRAs) very often have been criticized for announcing inaccurate credit ratings and are suspected of being exposed to con‡icts 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...

Existing research links CEO personality traits to a number of corporate decisions including overinvestment, external acquisitions, and earnings management. These findings raise the question of whether counterparties distinguish between differences in individual CEO behavior, and how they respond to it. We focus on two key counterparties – auditors and credit rating agencies – and examine whethe...