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dc.contributor.authorKraft, Korneliusen_US
dc.contributor.authorCzarnitzki, Dirken_US
dc.date.accessioned2009-02-16T14:47:47Z-
dc.date.available2009-02-16T14:47:47Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/24007-
dc.description.abstractCredit ratings are commonly used by lenders to assess the default risk, because every credit is connected with a possible loss. If the probability of a default is above a certain threshold, a credit will not be provided. The purpose of this paper is to test whether credit ratings contribute valuable information on the creditworthiness of firms. Employing a large sample of Western German manufacturing firms, we investigate loan defaults. First, we estimate Probit models with publicly available information. Subsequently, we additionally use a credit rating and show that it contributes significantly to the regression fit. However, the publicly available information has an independent effect aside of the ratings. Simple calculations demonstrate that the interest rate has to increase significantly to compensate for a possible loss in case of default, if a firm has a weak rating.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 04-07en_US
dc.subject.jelC25en_US
dc.subject.jelG33en_US
dc.subject.ddc330en_US
dc.subject.keywordCredit Ratingen_US
dc.subject.keywordInsolvencyen_US
dc.subject.keywordLoan Defaulten_US
dc.subject.keywordDiscrete Regression Modelsen_US
dc.subject.stwKreditwürdigkeiten_US
dc.subject.stwKreditrisikoen_US
dc.subject.stwInformationswerten_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.titleAre Credit Ratings Valuable Information?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn378340506en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:1608-
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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