Asset Opaqueness, Split Bond Ratings, and Rating Migration
35 Pages Posted: 2 Jun 2005
Date Written: June 2005
This paper finds that firms with large asset opaqueness problems are more likely to receive split bond ratings from Moody's and S&P rating agencies, split rated bonds and bond with more opaque assets are more likely to have rating changes in the future. These results imply a causal link between asset opaqueness, split ratings and rating changes.
Keywords: bond rating, split rating, asset opaqueness, rating migration, rating change
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Rating Banks: Risk and Uncertainty in an Opaque Industry
Market Evidence on the Opaqueness of Banking Firms' Assets
By Mark J. Flannery, Simon H. Kwan, ...
Bond Market Discipline of Banks: Is the Market Tough Enough?
By Donald P. Morgan and Kevin J. Stiroh
How Well Do Adverse Selection Components Measure Adverse Selection?
By Bonnie F. Van Ness, Robert A. Van Ness, ...
On Information Asymmetry Metrics
By Jonathan Clarke and Kuldeep Shastri
True Spreads and Equilibrium Prices
By Tarun Chordia and Clifford A. Ball
Economic and Financial Determinants of Oil and Gas Exploration Activity
Corporate Diversification, Asymmetric Information, and Firm Value: Evidence from Stock Market Trading Characteristics
By Shawn Thomas and C. Edward Fee
Financial Contracting and the Choice between Private Placement and Publicly Offered Bonds
By Simon H. Kwan and Willard T. Carleton
Insider Trading and the Bid-Ask Spread
By Charlie Charoenwong and Kee H. Chung