Do credit ratings affect the information content of corporate disclosure? Using novel data on rating analysts to obtain exogenous variation in rating information, we find that greater uncertainty in credit ratings increases the quality of information disclosed by the firm. This is consistent...

This paper examines the price effects following credit rating revisions. We find a new return series after the announcement of credit downgrades. Contrary to the most recent US studies by Griffin and Sanvicente (1982), Holthausen and Leftwich (1986), Hand et al. (1992), and Dichev and Piotroski...

We examine whether they engage in income-increasing accruals manipulation (AM) or real activities earnings management (RM) to affect the future rating changes when firm managers have private information about the upcoming credit rating change. Using the large sample of U.S. data over the period...

There are few things more constant in life than the rise and fall of financial markets. When markets crash, however, we are forced to restore them while learning from our mistakes. In the wake of the recent subprime mortgage crisis, Congress has drastically but deservedly overhauled the...

We examine initial public offerings (IPOs) with single, multiple, and no credit ratings. We document a beneficial effect of credit ratings provided by the three main credit rating agencies on IPO underpricing, which is amplified by the existence of multiple credit ratings. Credit rating levels...

We examine initial public offerings (IPOs) with single, multiple, and no credit ratings. We document a beneficial effect of credit ratings on IPO underpricing, which is amplified by the existence of multiple credit ratings. Multiple ratings also reduce the extent of filing price revisions....

Trade debt will be a permanent and very important source of short-term financing. Different types of return ratios have a decisive and different impact on trade debt. In fact, internal return ratios are able to explain firms' short-term financial behavioural towards an increase (or decrease) on...

The MSME sector is a major source of growth in developing and transition economies. Despite their economic significance, MSMEs face a number of bottlenecks that prevent them from achieving their full potential. A major obstacle in MSME development is its inability to access timely and adequate...

Basel III proposes market discipline (banking disclosure requirements) as a key instrument to achieve soundness in the banking system. Consequently, it is necessary to test the presence of responses to bank risk on the part of the economic agents. This article empirically studies the mechanisms...