Informational Effects of Regulation Fd: Evidence from Rating Agencies

By Philippe Jorion, Zhu Liu, Charles Shi. 2005

524 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/57040979115c805f42953967fe35d5b8b31b2d15

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Boochun Jung
2. Y. Yang
3. Sergey Chernenko
4. Naomi S. Soderstrom
5. Adi Sunderam

In Economics and Econometrics

1. Boochun Jung
2. Y. Yang
3. Sergey Chernenko
4. Naomi S. Soderstrom
5. Adi Sunderam

In Finance

1. Boochun Jung
2. Y. Yang
3. Sergey Chernenko
4. Naomi S. Soderstrom
5. Adi Sunderam

Citations in the corpus

• Earnings Smoothing Activities of Firms to Manage Credit Ratings (2012, background): “Jorion et al. (2005) argue that rating agencies are sophisticated users of financial information, who have access to a broad set of information, including private information.”
• The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research (2015, unknown): “Consistent with such a response, Jorion et al. (2005) find that credit rating changes have stronger stock market reactions after Reg FD.”
• Credit Rating Agencies in Capital Markets: A Review of Research Evidence on Selected Criticisms of the Agencies (2007, unknown): “Jorion, Liu, and Shi (2005) do find, however, that the market reaction to upgrades, insignificant in many prior studies, became significant after Reg FD went into effect.”
• Impact of the Dodd-Frank Act on Credit Ratings (2014, unknown): “Jorion, Liu, and Shi (2005) find that the information content of both credit rating downgrades and upgrades is greater following the passage of Regulation Fair Disclosure (FD) in 2000.”
• Does It Matter Who Pays for Bond Ratings? Historical Evidence (2010, unknown): “…have different rating methods, 10 regardless of the revenue model, in model (1) we control for firm- and issue-specific characteristics used in prior research to explain bond ratings (Ahmed et al. 2002; Blume et al. 1998; Campbell and Taksler 2003; Kaplan and Urwitz 1979; Pinches and Mingo 1973).”
• Are All Ratings Created Equal? The Impact of Issuer Size on the Pricing of Mortgage-Backed Securities (2012, unknown): “, Mian and Sufi (2009), Keys et al. (2010), Loutskina and Strahan (2010)). Several papers empirically examine credit ratings in structured finance markets (e.g., Adelino (2009), Benmelech and Dlugosz (2009a, 2009b), Nadauld and Sherlund (2009), Ashcraft, Goldsmith-Pinkham, and Vickery (2010), Demiro”
• The debt market relevance of management earnings forecasts: evidence from before and during the credit crisis (2011, unknown): “In addition, Kasznik and Lev (1995) and Hutton and Stocken (2007), among others, report that firms with bad news are more likely to issue management forecasts than firms with good news.”
• Financial statement comparability and credit risk (2013, unknown): “among bond market participants (Diamond and Verrecchia (1991)), assuming that informed participants do not have superior ability to evaluate public information (Kim and Verrecchia (1994), Gow et al.”
• Who Uses Financial Reports and for What Purpose? Evidence from Capital Providers (2014, unknown): “This suggests that accounting information is a major input, but also that credit analysts gather other information (Graham et al., 2001; Lee, 2002; Jorion et al., 2005).”
• Information asymmetry, information dissemination and the effect of regulation FD on the cost of capital (2008, unknown): “…and Venkataraman (2004), and Chiyachantana, Jiang, Taechapiroontong, and Wood (2004) show that effective bid-ask spreads declined ARTICLE IN PRESS J. Duarte et al. / Journal of Financial Economics 87 (2008) 24–4426 Gorton, and Madureira (2006), Jorion, Liu, and Shi (2005), and Straser (2002).”