Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24007
Full metadata record
DC FieldValueLanguage
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 theprobability of a default is above a certain threshold, a credit will notbe provided. The purpose of this paper is to test whether credit ratingscontribute 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 withpublicly available information. Subsequently, we additionally use acredit rating and show that it contributes significantly to the regressionfit. However, the publicly available information has an independenteffect aside of the ratings. Simple calculations demonstrate that theinterest rate has to increase significantly to compensate for a possibleloss in case of default, if a firm has a weak rating.en_US
dc.language.isoengen_US
dc.publisher|aZentrum für Europäische Wirtschaftsforschung (ZEW) |cMannheimen_US
dc.relation.ispartofseries|aZEW Discussion Papers |x04-07en_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-

Files in This Item:
File
Size
127.54 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.