Lee, Wai Choi; Shen, Jianfu; Cheong, Tsun Se; … - In: Financial innovation : FIN 7 (2021), pp. 1-23
In this study, we compare the adjustments of credit ratings by an investor-paid credit rating agency (CRA), represented …, the downgrade and upgrade probabilities of a credit rating assigned by these two CRAs of different compensation systems … found that investor-paid ratings are more likely to be downgraded than issuer-paid ratings only in the lower rating grades …