Feedback effects of credit ratings

204 citations recorded by the source corpus.

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Endogenous Liquidity and Defaultable Bonds (2012, unknown): “Manso (2011) points out that credit ratings affect a firm’s default decision, which feeds back into the rating decision.”
The Real Effects of Credit Ratings: The Sovereign Ceiling Channel (2017, background): “Manso (2013) shows that in this setting, rating downgrades can significantly amplify adverse shocks to firm fundamentals because of feedback effects between ratings and firm behavior.”
Do Rating Agencies Cater? Evidence from Rating-Based Contracts (2015, unknown): “However, rating-based performance pricing imposes a circularity problem because credit ratings themselves can affect the credit quality of the borrower (Manso et al. 2010; Manso 2013).”
The Economic Effects of Public Financing: Evidence from Municipal Bond Ratings Recalibration (2017, unknown): “Credit ratings matter for firm investment and financial policy (Faulkender and Petersen 2006; Kisgen 2006, 2009; Sufi 2009; Tang 2009; Kisgen and Strahan 2010; Chernenko and Sunderam 2012; Manso 2013; Almeida et al. 2017).”
Revolving Doors on Wall Street (2016, background): “…(2006, 2009, 2012), Sufi (2009), Tang (2009), Kisgen and Strahan (2010), White (2010), Ellul, Jotikasthira, and Lundblad (2011), Bongaerts, Cremers, and Goetzman (2012), Opp, Opp, and Harris (2012), and Manso (2013). non-transitioning analysts’ ratings as benchmarks to identify abnormal ratings.”