Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/27929 
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dc.contributor.authorBannier, Christina E.en
dc.contributor.authorHirsch, Christianen
dc.date.accessioned2009-09-15-
dc.date.accessioned2009-09-16T12:08:55Z-
dc.date.available2009-09-16T12:08:55Z-
dc.date.issued2009-
dc.identifier.piurn:nbn:de:101:1-2009070304en
dc.identifier.urihttp://hdl.handle.net/10419/27929-
dc.description.abstractCredit rating agencies do not only disclose simple ratings but announce watchlists (rating reviews) and outlooks as well. This paper analyzes the economic function underlying the review procedure. Using Moody's rating data between 1982 and 2004, we find that for borrowers of high creditworthiness, rating agencies employ watchlists primarily in order to improve the delivery of information. For low-quality borrowers, in contrast, the review procedure seems to have developed into an implicit contract `a la Boot, Milbourn, and Schmeits (2006), inducing the companies on watch to abstain from risk-augmenting actions. The agencies' economic role hence appears to have been enhanced from a pure information certification towards an active monitoring function.en
dc.language.isoengen
dc.publisher|aFrankfurt School of Finance & Management |cFrankfurt a. M.en
dc.relation.ispartofseries|aFrankfurt School - Working Paper Series |x124en
dc.subject.jelG14en
dc.subject.jelG29en
dc.subject.jelG33en
dc.subject.ddc330en
dc.subject.keywordCredit Rating Agenciesen
dc.subject.keywordCredit Ratingen
dc.subject.keywordWatchlisten
dc.subject.keywordRating Reviewen
dc.subject.keywordMarket Reactionen
dc.subject.keywordEvent Studyen
dc.titleThe economic function of credit rating agencies: what does the watchlist tell us?-
dc.typeWorking Paperen
dc.identifier.ppn605675929en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:fsfmwp:124en

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