Competition and Credit Ratings After the Fall

被引：38

作者：

Flynn, Sean ^{[1
]}

Ghent, Andra ^{[2
]}

机构：

[1] Arizona State Univ, Tempe, AZ 85281 USA

[2] Univ Wisconsin, Madison, WI 53706 USA

来源：

MANAGEMENT SCIENCE | 2018年 / 64卷 / 04期

关键词：

financial institutions; markets; finance; investment; corporate finance; industrial organization; market structure; firm strategy; market performance; credit ratings; rating shopping; rating catering; CORPORATE BOND MARKET; COMMERCIAL MORTGAGES; TRANSACTION COSTS; AGENCIES; QUALITY;

D O I：

10.1287/mnsc.2016.2604

中图分类号：

C93 [管理学];

学科分类号：

12 ; 1201 ; 1202 ; 120202 ;

摘要：

We analyze the entry of newcredit rating agencies into structured finance products. Our setting is unique as we study a period in which the incumbents' reputation was extremely poor and the benefit of more fee income from inflating ratings was low. We find entrants issue higher ratings than incumbents, particularly for interest-only tranches. Using measures of market share that are exogenous to incumbent ratings, we provide suggestive evidence that incumbent rating levels become more generous as entrant market share in a product type increases. We also exploit a feature of structured finance that identifies rating shopping and find that incumbent ratings increase in shopping.

引用

页码：1672 / 1692

页数：21

共 57 条

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