An influential literature shows that product quality varies widely across countries and industries. In this paper, we propose and test an explanation that rests on the interplay between cross-country differences in financial frictions and cross-industry differences in financial vulnerability. We...

From time ago, I humbly thought that classical metrics for profitability measurement over Financial Markets operatives or strategies, does not content the proper ingredients to measure accurately, to compare them properly, and to get a good quality measurement.I saw the evidences confirming that...

Past studies document that incentive conflicts may lead issuer-paid credit rating agencies to provide optimistically-biased ratings. In this paper, we present evidence that investors question the quality of issuer-paid ratings and raise corporate bond yields where the issuer-paid rating is more...