Asset Opaqueness, Split Bond Ratings, and Rating Migration
35 Pages Posted: 2 Jun 2005
Date Written: June 2005
Abstract
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?
Recommended Papers
-
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
-
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