Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditions
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/122921 |
Resumo: | Credit Rating Agencies (CRAs) have been criticized for persistently assigning inflatedratings. Aiming to limit such behaviour, following the 2008/09 crisis, regulators imposed new rules on CRAs. In this paper, I show that, in the post-financial crisis era, rating inflation and investors perception are, on average, non-existent. Evidence shows poor credit quality and time drives rating inflation, but investors fail to perceive it. I also uncover CRAs greater competition’s dual effect: leads to inflation, while investor slink monitoring to reduced inflation. Lastly, I expose that issuers benefiting the most from inflation are more likely to issue bonds within three months, whilst dismissing investors’ perception. |
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Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditionsCorporate debt marketsInformation intermediationFixed income securitiesCorporateDomínio/Área Científica::Ciências Sociais::Economia e GestãoCredit Rating Agencies (CRAs) have been criticized for persistently assigning inflatedratings. Aiming to limit such behaviour, following the 2008/09 crisis, regulators imposed new rules on CRAs. In this paper, I show that, in the post-financial crisis era, rating inflation and investors perception are, on average, non-existent. Evidence shows poor credit quality and time drives rating inflation, but investors fail to perceive it. I also uncover CRAs greater competition’s dual effect: leads to inflation, while investor slink monitoring to reduced inflation. Lastly, I expose that issuers benefiting the most from inflation are more likely to issue bonds within three months, whilst dismissing investors’ perception.Ottonello, GiorgioRUNNovo, Inês Carreira2021-08-22T19:25:10Z2021-01-252021-01-042021-01-25T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10362/122921TID:202740463enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T05:04:24Zoai:run.unl.pt:10362/122921Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:44:53.966929Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditions |
title |
Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditions |
spellingShingle |
Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditions Novo, Inês Carreira Corporate debt markets Information intermediation Fixed income securities Corporate Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditions |
title_full |
Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditions |
title_fullStr |
Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditions |
title_full_unstemmed |
Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditions |
title_sort |
Credit rating inflation in the post-financial crisis era: conflict of interests or changed conditions |
author |
Novo, Inês Carreira |
author_facet |
Novo, Inês Carreira |
author_role |
author |
dc.contributor.none.fl_str_mv |
Ottonello, Giorgio RUN |
dc.contributor.author.fl_str_mv |
Novo, Inês Carreira |
dc.subject.por.fl_str_mv |
Corporate debt markets Information intermediation Fixed income securities Corporate Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Corporate debt markets Information intermediation Fixed income securities Corporate Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
Credit Rating Agencies (CRAs) have been criticized for persistently assigning inflatedratings. Aiming to limit such behaviour, following the 2008/09 crisis, regulators imposed new rules on CRAs. In this paper, I show that, in the post-financial crisis era, rating inflation and investors perception are, on average, non-existent. Evidence shows poor credit quality and time drives rating inflation, but investors fail to perceive it. I also uncover CRAs greater competition’s dual effect: leads to inflation, while investor slink monitoring to reduced inflation. Lastly, I expose that issuers benefiting the most from inflation are more likely to issue bonds within three months, whilst dismissing investors’ perception. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-08-22T19:25:10Z 2021-01-25 2021-01-04 2021-01-25T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/122921 TID:202740463 |
url |
http://hdl.handle.net/10362/122921 |
identifier_str_mv |
TID:202740463 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799138055668367360 |