Tiebreaker : Certification and Multiple Credit Ratings ∗

  title={Tiebreaker : Certification and Multiple Credit Ratings ∗},
  author={DION BONGAERTS and K. J. MARTIJN CREMERS and William Goetzmann},
This paper explores the economic role credit rating agencies play in the corporate bond market. We consider three existing theories about multiple ratings: information production, rating shopping and regulatory certification. Using differences in rating composition, default prediction and credit spread changes, our evidence only supports regulatory certification. Marginal, additional credit ratings are more likely to occur because of, and seem to matter primarily for regulatory purposes, but do… CONTINUE READING
Highly Cited
This paper has 45 citations. REVIEW CITATIONS


Publications referenced by this paper.
Showing 1-10 of 22 references

Do Regulations Based on Credit Ratings Affect a Firm’s Cost of Capital

  • Kisgen, J Darren, Philip E. Strahan
  • 2009

Reputation and competition: evidence from the credit rating industry, Working Paper

  • Becker, Bo, Todd T. Milbourn
  • 2008

How and Why Credit Rating Agencies are Not Like Other Gatekeepers

  • Partnoy, Frank
  • 2006

Modeling the Role of Credit Rating Agencies- Do they Spark of Virtuous Circle

  • Bannier, E Christina, Marcel Tyrell
  • 2006

Are Unsolicited Credit Ratings lower? International Evidence from Bank Ratings

  • Poon, H WinnieP., Firth, Michael
  • Journal of Business Finance and Accounting,
  • 2005

Similar Papers

Loading similar papers…