Studies have shown that when two information providers or outside auditors exist, the value provided by the second one will be decreased by the actions of the first. Capitalizing on the highly similar functions performed by banks and rating agencies, this paper examines the informational value of the credit ratings of bank loans. Further, it provides evidence on whether rating agencies duplicat...

Investment in stock market involves many decision rules and variables; hence investors are increasingly relying on ratings provided by rating agencies to guide their stock selections. However, do these stocks ratings have information value? Are rating agencies’ ratings valid? We research these questions by analyzing the performance of rating agencies. This study provides empirical evidence on t...

Giulia Mennillo’s Credit Rating Agencies provides an advanced introduction to the complex phenomenon of credit ratings. It up-to-date and meticulous information on rating agencies their regulatory context, it engages with some theoretical issues.

The recent financial crisis has raised questions regarding the role credit rating agencies play in monitoring the quality of corporate debt. Utility industry deregulation serves as a natural testing ground for evaluating the prudence of rating agencies and their monitoring process. Following deregulation and the Enron scandal, the general opinion among industry professionals is that utilities a...