This study assesses the validity of widespread criticisms of the large,“nationally recognized”
credit rating agencies (CRAs). The accounting scandals of 2000-02, in particular the highly …

A company's credit default swap spread is the cost per annum for protection against a
default by the company. In this paper we analyze data on credit default swap spreads …

This study investigates the aggregate stock market impact of sovereign rating changes.
Consistent with evidence pertaining to company credit rating changes, we report that rating …

In recent years, the demand for sovereign ratings has increased mainly due to the inevitable
globalisation of markets. This study analyses the quantitative determinants of sovereign …

This study examines managers' attempts to alter rating agencies' perception of credit risk
through long-term earnings smoothing activities. 1 Credit rating agencies such as Standard …

We report on the current state and important older findings of empirical studies on corporate
credit ratings and their relationship to ratings of other entities. Specifically, we consider the …

Credit rating agencies do not only disclose simple ratings but announce watchlists (rating
reviews) and outlooks as well. This paper analyzes the economic function underlying the …

This paper shows that studies of announcement effects of bond rating changes should take
into account the initial rating. First, we provide theoretical support for different price effects as …

This paper presents the first comprehensive test of whether well-known conflicts of interest at
bond rating agencies importantly influence their actions. This hypothesis is tested against …

We document the ability of the credit default swap (CDS) market to anticipate favorable as
well as unfavorable credit rating change (RC) announcements based on more extensive …