Impact of the Dodd-Frank Act on Credit Ratings

  title={Impact of the Dodd-Frank Act on Credit Ratings},
  author={Valentin Dimitrov and Darius Palia and Leo Shing-Tung Tang},
  journal={Comparative Political Economy: Regulation eJournal},
An Empirical Analysis of the effects of the Dodd-Frank Act on the Determinants and Informativeness of Credit Ratings
We study the effects of the Dodd-Frank Act on the determinants and informativeness of credit ratings. We predict that the increase in regulatory oversight and litigation risk, as well as improved
Detecting conflicts of interest in credit rating changes: a distribution dynamics approach
In this study, we compare the adjustments of credit ratings by an investor-paid credit rating agency (CRA), represented by Egan-Jones Ratings Company, and an issuer-paid CRA, represented by Moody’s
The impact of ESMA regulatory identifiers on the quality of ratings
Rating-Based Restriction, Credit Rating Inflation and Bond Covenants - Evidence from Chinese Bond Market
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How has the Passage of the Dodd-Frank Act Affected Performances of Small and Medium Size Banks? An Empirical Analysis of Increasing Regulatory Stringency
On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law as a policy response to the worst financial crisis since the Great Depression. With
Was Regulation (EC) No 1060/2009 on Credit Rating Agencies effective?
The purpose of this paper is (1) to put the Regulation (EC) No 1060/2009 on Credit Rating Agencies (henceforth, CRA I) into historical perspective, including a comparison with the Dodd–Frank Act, and
Do Credit Ratings Concerns Lead to Better Corporate Governance? Evidence from Korea
We study the 1997 Asian financial crisis to show that credit rating concerns affect firms' corporate governance. We treat the crisis as an exogenous shock that led to improvements in the
Security design and credit rating risk in the CLO market
In this paper, we empirically explore the effect of the complexity of a security's design on hypotheses relating to credit rating shopping and rating catering in the collateralized loan obligation


Ratings Reform: The Good, The Bad, and The Ugly
Both in Europe and in the United States, major steps have been taken to render credit rating agencies more accountable. But do these steps address the causes of the debacle in the subprime mortgage
Rating Agencies in the Face of Regulation
This paper develops a theoretical framework to shed light on variation in credit rating standards over time and across asset classes. Ratings issued by credit rating agencies serve a dual role: they
The Credit Ratings Game
The collapse of so many AAA-rated structured finance products in 2007-2008 has brought renewed attention to the causes of ratings failures and the conflicts of interest in the Credit Ratings
Credit Ratings and Litigation Risk
We develop a model of a credit rating agency in which the rating agency expends due-diligence effort to learn about the issuer's credit risk, and the precision of its rating is predicated both on
The Credit Rating Crisis and the Informational Content of Corporate Credit Ratings
There has been much scrutiny of the Credit Rating Agencies’ (CRAs) flawed ratings of structured products in the build-up to the financial crisis. Our study examines whether the ‘credit rating crisis’
A Pattern of Unaccountability: Rating Agency Liability, The Dodd-Frank Act, and a Financial Crisis That Could Have Been Prevented
By opining on the credit quality of structured debt products, credit rating agencies guide investment decisions and facilitate the debt capital markets. In the years leading up to the financial
The Information Value of Bond Ratings
We test whether bond ratings contain pricing-relevant information by examining security price reactions to Moody's refinement of its rating system, which was not accompanied by any fundamental change
Ratings Shopping and Asset Complexity: A Theory of Ratings Inflation
Many identify inflated credit ratings as one contributor to the recent financial market turmoil. We develop an equilibrium model of the market for ratings and use it to examine possible origins of