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public information. Overall, we find no evidence for a downward bias in unsolicited ratings …
Persistent link: https://www.econbiz.de/10013057451
This paper examines local bias in the context of venture capital (VC) investments. Based on a sample of US VC … record) and VCs with broader networks exhibit less local bias. Staging and specialization in technology industries increase … VCs' local bias. We also find that the VC exhibits stronger local bias when it acts as the lead VC and when it is …
Persistent link: https://www.econbiz.de/10013155051
In this paper we challenge the view that corporate bonds are always arm's length debt. We analyze the effect of bond ratings on the stock price return to acquirers in M&A transactions, which tend to have significant effects on creditor wealth. We find acquirers abnormal returns to be higher if...
Persistent link: https://www.econbiz.de/10008934787
This study investigates how credit ratings affect firm innovation. By exploiting sovereign downgrades as an exogenous shock to corporate credit ratings, we show that a sovereign downgrade leads to significant reductions in innovation among firms that have a rating at the sovereign bound ex ante....
Persistent link: https://www.econbiz.de/10012853677
We compare the stability and timeliness of credit ratings produced by a traditional issuer-paid rating agency (Moody's Investors Service) and a subscriber-paid rater (Rapid Ratings). Moody's ratings exhibit less volatility but are slower to identify default risk. We control for Moody's aversion...
Persistent link: https://www.econbiz.de/10013069060
Recent studies examining the effects of a credit rating on firms’ capital structure and adjustment of capital structure to target have focused predominantly on non-financial firms, with virtually no attention given to financial institutions. Using an international sample of 391 rated banks...
Persistent link: https://www.econbiz.de/10013404996
Persistent link: https://www.econbiz.de/10010408371
There has been heated debate regarding credit-rating agencies' (CRAs') reporting accuracy of corporate credit ratings, which is essential for investors because they rely on those crediting ratings to make investment decisions. We estimate the reporting accuracy using the data on corporate...
Persistent link: https://www.econbiz.de/10014465651
look-ahead bias, we re-estimate expected idiosyncratic volatility using information only up to time t - 1. We find no …
Persistent link: https://www.econbiz.de/10012846905
-level records covering the whole universe of French firms. The quasi-random assignment of judges to cases reveals that judge bias … find that the uncertainty associated with the actual dispersion of judge bias is small and has a non-significant impact on …
Persistent link: https://www.econbiz.de/10013243055