How Did Increased Competition Affect Credit Ratings

By Bo Becker, Todd Milbourn. 2011

719 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/09e93e57c4b67ade63a7f577b2ade0ae6af7c063

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Citations in the corpus

Credit Ratings and the Evolution of the Mortgage-Backed Securities Market (2011, background): “…deals to the ratings agencies and thus had substantial bargaining power over them.2 Theoretical research (e.g., Bolton, Freixas, and Shapiro, 2009; Bar-Isaac and Shapiro, 2010) shows that the perverse incentive of the 1 Becker and Milbourn (forthcoming) provide evidence that increased competition…”
Rating Agency Adjustments to GAAP Financial Statements and Their Effect on Ratings and Credit Spreads (2015, background): “Firms with public equity outstanding are part of a rich information setting because a dispersed group of shareholders and other information intermediaries, such as equity research analysts and the press, process and disseminate information (Burgstahler et al. (2006), Ball and Shivakumar (2005), Ball”
Have Rating Agencies Become More Conservative? Implications for Capital Structure and Debt Pricing (2013, positive): “Becker and Milbourn (2011) find that S&P and Moody’s relaxed their ratings standards as Fitch gained market share over the period 1995 to 2006.”
Information Effect of Entry into Credit Ratings Market: The Case of Insurers' Ratings (2012, background): “Denote  ≥ 0 the Lagrangian multiplier of (6).”
The Financial Crisis of 2007–2009: Why Did It Happen and What Did We Learn? (2015, neutral): “See Becker and Milbourn (2011) for empirical evidence.”
Estimating the Costs of Issuer-Paid Credit Ratings (2013, positive): “But when new entrants are compensated by issuers (like incumbents), competition potentially lowers rating quality; see Skreta and Veldkamp (2009), Becker and Milbourn (2011), Bolton, Freixas, and Shapiro (2012), and Griffin, Nickerson, and Tang (2013).”
The Economic Effects of Public Financing: Evidence from Municipal Bond Ratings Recalibration (2017, neutral): “Becker and Milbourn (2011) find that increased competition from Fitch is associated with higher and less informative ratings from the incumbents (Moody’s and S&P).”
Impact of the Dodd-Frank Act on Credit Ratings (2014, positive): “Using Fitch's entry into the CRA market as a competitive shock, Becker and Milbourn (2011) show that increased competition from Fitch coincides with lower quality ratings from the incumbent CRAs (Moody's and Standard and Poor's (S&P)).4 By decreasing expected rents in the industry, competition…”
Ratings Quality Over the Business Cycle (2013, background): “Condition (12) is not enough to explore the case of positive correlation.”
Are All Ratings Created Equal? The Impact of Issuer Size on the Pricing of Mortgage-Backed Securities (2012, neutral): “(1) (2) (3) (4) (5) (6) (7) (8) Issuer Share 0.”