Disagreement between rating agencies and bond opacity: A theoretical perspective
AbstractIn this paper, we explicitly model a bond rating process under varying degrees of bond opacity and derive conditions under which disagreements between rating agencies (rating splits) can serve as a useful proxy for opacity in empirical analyses.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 123 (2014)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/ecolet
Opaque assets; Ratings; Rating agencies; Rating splits;
Find related papers by JEL classification:
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
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