Do solicitations matter in bank credit ratings? Results from a study of 72 countries
Document Type
Journal article
Source Publication
Journal of Money, Credit and Banking
Publication Date
3-1-2009
Volume
41
Issue
2-3
First Page
285
Last Page
314
Publisher
Wiley-Blackwell Publishing, Inc.
Keywords
banks, credit rating, unsolicited, NRSROs
Abstract
Would the credit ratings of unsolicited banks be higher if they were solicited? Alternatively, would the credit ratings of solicited banks would be lower if they were unsolicited? To answer these questions, we use an endogenous regime-switching model and data from 460 commercial banks in 72 countries, excluding the United States, for the period 1998–2003. The answer to both questions is yes. Our results show that the observed differences between solicited and unsolicited ratings can be explained by both the solicitation status and financial profile of the banks. This finding is a new contribution to the literature.
DOI
10.1111/j.1538-4616.2009.00206.x
Print ISSN
00222879
E-ISSN
15384616
Publisher Statement
Copyright © 2009 The Ohio State University
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Poon, W. P. H., Lee, J., & Gup, B. E. (2009). Do solicitations matter in bank credit ratings? Results from a study of 72 countries. Journal of Money, Credit and Banking, 41(2-3), 285-314. doi: 10.1111/j.1538-4616.2009.00206.x