TY  - UNPD
A1  - Hirsch, Christian
A1  - Bannier, Christina E.
T1  - The economics of rating watchlists: evidence from rating changes
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2008,02
N2  - Generally, information provision and certification have been identified as the major economic functions of rating agencies. This paper analyzes whether the “watchlist" (rating review) instrument has extended the agencies' role towards a monitoring position, as proposed by Boot, Milbourn, and Schmeits (2006). Using a data set of Moody's rating history between 1982 and 2004, we find that the overall information content of rating action has indeed increased since the introduction of the watchlist procedure. Our findings suggest that rating reviews help to establish implicit monitoring contracts between agencies and borrowers and as such enable a finer partition of rating information, thereby contributing to a higher information quality.
T3  - CFS working paper series - 2008, 02 
KW  - Credit Rating Agencies
KW  - Watchlist
KW  - Market Reactions
KW  - Event Study
KW  - Rating
KW  - Checkliste
Y1  - 2008
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/305
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-52376
IS  - December 12, 2007
ER  -