For decades credit rating agencies were viewed as trusted arbiters of creditworthiness and their ratings as important …

This paper explores the economic role credit rating agencies play in the corporate bond market. We consider three … existing theories about multiple ratings: information production, rating shopping and regulatory certification. Using … differences in rating composition, default prediction and credit spread changes, our evidence only supports regulatory …

studies the credit rating crisis of 2007-2008 and in particular describes the collapse of the credit ratings of ABS CDOs …

interest of Credit Rating Agencies (CRAs). We model both the CRA conflict of understating credit risk to attract more business … (conditional on the same equilibrium CRA rating policy) than having a monopoly CRA, in terms of both total ex-ante surplus and … payments for rating services (before CRAs propose a rating to the issuer) combined with mandatory disclosure of any rating …

We analyze a model where investors use a credit rating to decide whether to finance a firm. The rating quality depends … on unobservable effort exerted by a credit rating agency (CRA). We study optimal compensation schemes for the CRA when a … planner, the firm, or investors order the rating. Rating errors are larger when the firm orders it than when investors do (and …

For decades credit rating agencies were viewed as trusted arbiters of creditworthiness and their ratings as important …

, the coarseness of rating patterns and the sellers' dynamic certification strategies. In the model, certifiers respond to …