When a company undertakes e-commerce transactions for the first time, most major web sites set the initial credit score of the company as zero, which making buyers and sellers can’t judge the partners’ credibility. In recent years, although commercial banks and some specialized credit rating agencies have established more comprehensive and scientific indicators for evaluating the credit of an e...

This dissertation studies the issues on information and the bond market. The first essay examines the incentives of certified credit rating agencies to issue credit watches. The second essay studies how quality of private information of investors affects bond yield spreads. The third essay studies whether more accrual-based income smoothing is related with better or worse bond ratings. Essay 1:...

Risk assessment of credit portfolios is of pivotal importance in the banking industry. The bank that has the most accurate view of its credit risk will be the most profitable. One of the main pillars in assessing credit risk is the estimated probability of default of each counterparty, i.e., the probability that a counterparty cannot meet its payment obligations in the horizon of one year. A cr...

The firm’s credit rating is an important communication tool and previous research has shown that many companies consider it important in capital structure decisions. This study examines the determinants of capital structure in MENA banks. In addition, it investigates the determinants of credit rating. Further, the impact of credit rating and capital structure on banks’ performance is examined. ...

Enterprise credit rating is an important issue in finance field. Small and Medium Enterprises are playing more and more important role in world economy development. Especially, China SMEs has gained rapid development in recent years. However, financing difficulty is a predominant and common problem for the SMEs in China. It needs joint effort to solve the SMEs financing embarrassment. One of th...

Suppose a bank has a database of people’s details and their credit rating. These details would probably be the person’s financial characteristics such as how much they earn, whether they own or rent a house, and so on, and would be used to calculate the person’s credit rating. However, the process for calculating the credit rating from the person’s details is quite expensive, so the bank would ...

This paper presents an internally consistent analysis of the economic determinants of the term structure of credit spreads across different credit rating classes and industry sectors. Our analysis proceeds in two steps. First, we extract three economic factors from 13 time series that capture three major dimensions of the economy: inflation pressure, real output growth, and financial market vol...

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 ...

The most exchange volume in a country will be obtained through bank system whose correct function will have a determinant role in improving economic activities. Nowadays, the customer’s rating and accreditation subject has been considered more than before by the banks due to increase the volume of overdue claims and banks’ past over dues. One of the most important tools for controlling the bank...