Do Regulations Based on Credit Ratings Affect a Firm's Cost of Capital?

By Darren J. Kisgen, Philip E. Strahan. 2010

263 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/942b613578248302dd632f866973e81b8f2d5153

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In Accounting

1. Gustavo Manso
2. Sergey Chernenko
3. Adi Sunderam

In Finance

1. Gustavo Manso
2. Sergey Chernenko
3. Adi Sunderam

Citations in the corpus

• Estimating the Costs of Issuer-Paid Credit Ratings (2013, unknown): “Other empirical evidence suggesting that issuerpaid CRAs cater to their issuing clients include Kraft (2010), Ashcraft, Goldsmith-Pinkham, and Vickery (2010), Stanton and Wallace (2010), Bruno, Cornaggia, and Cornaggia (2013), Cornaggia, Cornaggia, and Hund (2013), Griffin and Tang (2012), Griffin, ”
• The Real Effects of Credit Ratings: The Sovereign Ceiling Channel (2017, unknown): “Credit ratings are a major concern for corporate managers’ because of the frictions associated with credit ratings (Kisgen (2006, 2007) and Kisgen and Strahan (2010)).3 First, ratings affect a firm’s access to the bond and commercial paper markets, because rating levels determine whether…”
• Managerial Ability and Credit Ratings (2017, unknown): “(2013), and Kraft (2014). However, there is evidence that the inherent subjectivity in qualitative analysis reduces the information quality of both corporate credit ratings (Fracassi, et al.”
• Feedback effects of credit ratings (2013, background): “Focusing on the regulatory-based explanation for the impact of ratings on yields, Kisgen and Strahan (2010) study the recent certification of ratings from Dominion Bond Rating Service for regulatory purposes.”
• Does It Matter Who Pays for Bond Ratings? Historical Evidence (2010, unknown): “The recent financial crisis has prompted a surge of research interest in credit rating agencies, particularly with respect to how the characteristics of the rating industry affect these agencies’ performance (e.g., Becker and Milbourn, 2011; Kisgen and Strahan, 2010).”
• Endogeneity in Accounting and Finance Research: Natural Experiments as a State-of-the-Art Solution (2015, unknown): “Study Focus Source of natural experiment Haselmann, Pistor and Vig (2010) Creditor rights and the size of creditor markets Reforms of creditor rights across 12 transition economies Kisgen and Strahan (2010) Credit ratings and firms’ cost of capital Dominion Bond Rating Service(DBRS) becoming a recog”
• The Real Consequences of Market Segmentation (2012, background): “A large number of regulations, investment charters, and contracts reference this distinction, and recent research suggests that it can affect firms’ capital structure and cost of capital (Kisgen, 2006; Kisgen and Strahan, 2009; Ellul, Jotikasthira, and Lundblad, 2010).”
• Are All Ratings Created Equal? The Impact of Issuer Size on the Pricing of Mortgage-Backed Securities (2012, unknown): “However, DBRS focused almost exclusively on the corporate bond market (Kisgen and Strahan (2010)).”