Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/242434 
Year of Publication: 
2021
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2021: Climate Economics
Publisher: 
ZBW - Leibniz Information Centre for Economics, Kiel, Hamburg
Abstract: 
Using an international sample of more than 65,000 rating actions by Fitch, Moody's and S&P, we analyze the effect of the Dodd-Frank Act on credit ratings. We document that (i) rating report content changes significantly after Dodd-Frank and (ii) show, by exploiting within firm-quarter variation, that ratings significantly improve after DoddFrank. While ratings are more accurate, updated more frequently, and reflect firm fundamentals more closely, there is no evidence for a decrease in rating stability after Dodd-Frank. Firms, especially constrained firms, benefit and issue more debt after rating agencies' first post Dodd-Frank rating action. For European firms, effects are generally weaker than for U.S. firms
Subjects: 
Dodd-Frank
Regulation
Cosine Similarity
Credit Rating
Credit Rating Report
Natural Experiment
JEL: 
G01
G14
G24
G28
Document Type: 
Conference Paper

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