Ratings as Measure of Financial Risk: Evolution, Function and Usage
AbstractThe rating agencies were emerged by the demand from market economy. Such agencies take the job of independent evaluation of the firms' financial strength, which allow firms decrease their expenses on their own market monitoring. It is extremely important with increasing number of potential business partners. The paper discusses history of rating business, methods of assigning ratings, rating classification, function and the directions of use.
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Bibliographic InfoArticle provided by New Economic Association in its journal Journal of the New Economic Association.
Volume (Year): (2009)
Issue (Month): 1-2 ()
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Ratings; rating agencies; risk evaluation;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
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- Kish, Richard J. & Hogan, Karen M. & Olson, Gerard, 1999. "Does the market perceive a difference in rating agencies?," The Quarterly Review of Economics and Finance, Elsevier, vol. 39(3), pages 363-377.
- Miles Livingston & Andy Naranjo & Lei Zhou, 2007. "Asset Opaqueness and Split Bond Ratings," Financial Management, Financial Management Association International, vol. 36(3), pages 49-62, 09.
- Livingston, Miles & Naranjo, Andy & Zhou, Lei, 2008. "Split bond ratings and rating migration," Journal of Banking & Finance, Elsevier, vol. 32(8), pages 1613-1624, August.
- Balatsky, E. & Ekimova, N., 2012. "The Global University Rankings: the Problem of Manipulation," Journal of the New Economic Association, New Economic Association, vol. 13(1), pages 126-146.
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