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- W2478137576 abstract "This paper examines how the information asymmetry of credit rating industry be alleviated by the entry of an independent rating agency, China Credit Rating (CCR), which utilize a combination of public utility and investor-pay business models. Using a difference-in-difference approach to compare the ratings by issuer-pay incumbents for CCR covered firms with uncovered firms. We find with respect to the uncovered group, the incumbent issuer-pay agencies significantly give more fair ratings for the CCR covered group. This result adds empirical evidence on literature documenting the influence of introducing a new rating agency with alternative business models differentiated from issuer-pay rating agencies. We further show that the more reputable issuer-pay rating agencies and firms with better information environment experience a greater reduction of information asymmetry after CCR entrant." @default.
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- W2478137576 date "2016-01-01" @default.
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- W2478137576 title "Information Asymmetry and Credit Rating? Evidence from a Quasi-Natural Experiment in China" @default.
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- W2478137576 doi "https://doi.org/10.2139/ssrn.2813906" @default.
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