An empirical analysis of changes in credit rating properties: Timeliness, accuracy and volatility

• 成果类型: Article
• 署名作者: Cheng, Mei; Neamtiu, Monica
• 署名单位: University of Arizona
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2008.11.001
• 发表日期: 2009
• 关键词: stock-prices; bond; agencies; bankruptcy

摘要

In recent years, credit rating agencies have faced increased regulatory pressure and investor criticism for their ratings' lack of timeliness. This study investigates whether and how rating agencies respond to such pressure and criticism. We find that the rating agencies not only improve rating timeliness, but also increase rating accuracy and reduce rating volatility. Our findings support the criticism that, in the past, rating agencies did not avail themselves of the best rating methodologies/efforts possible. When their market power is threatened by the possibility of increased regulatory intervention and/or reputation concerns, rating agencies respond by improving their credit analysis. (C) 2008 Elsevier B.V. All rights reserved.