We compare the timeliness of the information signals produced by investor-paid credit rating agencies (Egan and Jones), issuer-paid credit rating agencies (Standard and Poor's), and by sell-side equity analysts, and study the predictive power of this information for the bond and equity markets...

This paper compares the behavior of standard or issuer-paid rating agencies (represented by Standard & Poor's, S&P) to alternative or investor-paid rating agencies (represented by the Egan and Jones Rating company, EJR) after the passage of the Dodd-Frank Act. Results show that both S&P and EJR...

We document a novel channel of monetary policy transmission based on credit rating thresholds. Focusing on non-financial U.S. firms between 1990-2007, we find that firms near a rating downgrade are relatively more sensitive to monetary shocks than firms in the middle of the rating distribution....