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Using an international sample of more than 65,000 rating actions by Fitch, Moody's and S&P, we analyze the effect of the Dodd-Frank Act on credit ratings. We document that (i) rating report content changes significantly after Dodd-Frank and (ii) show, by exploiting within firm-quarter variation,...
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The European Commission recently put forward a proposal for a regulation to amend and strengthen the 2009 version of … the EU's rules on the regulation of credit rating agencies ("CRA3"). Among other things, Art. 35a of the draft proposal …
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The principal agent problem is one of the major issues of the credit rating agency market. Is it possible to solve the prevailing incentive problem of the market and contemporaneously satisfy the reputation demand of the investors? This paper presents an option for regulating the credit rating...
Persistent link: https://www.econbiz.de/10009672312
the European Union (EU) rating market in the regulation imposed on the agencies. Methods/Approach: Selected key figures …-gered stricter regulation of the credit rating agencies. Such regulation has now been in force for a good decade. …
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' homogeneity, and widespread market reliance on these signals. Current scholarship on CRA regulation blames policymakers …. Standardizing methodologies or setting up a public CRA could reinforce ratings' homogeneity. Replacing ratings in regulation with …
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