Löffler, Gunter - In: Journal of Financial Services Research 43 (2013) 2, pp. 149-174
This paper examines whether the stock price of the rating agency Moody’s reacts negatively to rating actions that could … indicate low rating quality. The reaction to rating reversals, which Moody’s describes as particularly damaging to investors … neglect of default events are consistent with either collusion or with misconceptions of how rating quality should be …