Chou, Ting-Kai; Cheng, Jia-Chi - In: Journal of Empirical Finance 19 (2012) 2, pp. 266-281
We investigate the impact of credit ratings on the valuation of diversification. Our empirical results indicate that the existence and level of credit ratings are associated with a lower negative effect of diversification. Further analysis reveals that the mitigating effect of credit ratings on...