The Real Effects of Debt Certification: Evidence from the Introduction of Bank Loan Ratings

By Amir Sufi. 2009

384 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/b2ec0dd35d482450304b4a9fb0d0603d3878d5bd

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Citations in the corpus

Corporate Social Responsibility: Is it Rewarded by the Corporate Bond Market? A Critical Note (2010, background): “Even more, credit agencies provide a public certification effect that makes investors reluctant to lend if an issuer has no rating at all (Sufi, 2009).”
The Response of Corporate Financing and Investment to Changes in the Supply of Credit (2010, neutral): “…the control firms.16 This finding contrasts with the results in a number of recent papers (e.g., Faulkender and Petersen (2006), Leary (2007), and Sufi (2009)) that find evidence that differences in the supply of capital play an important role in determining firms’ leverage ratios and is driven…”
Information Asymmetry and Firms' Credit Market Access: Evidence from Moody's Credit Rating Format Refinement (2009, background): “The empirical analyses of this paper analyze the relation between the credit rating refinement and firms’ credit market access, both in terms of firms’ borrowing costs and their capital structure decisions, as well as the effects of the rating refinement on firms’ other real outcomes such as…”
The Real Consequences of Market Segmentation (2012, background): “Sufi (2009) studies how the introduction of syndicated bank loan ratings by Moody’s and Standard & Poor’s in 1995 expanded the set of investors able to invest in syndicated loans and led to increased debt issuance and investment by lower-rated borrowers.”
Credit-Induced Boom and Bust (2017, positive): “First, Mian and Sufi (2009) show that Zip codes with a higher fraction of subprime borrowers experienced an unprecedented relative growth in mortgage credit.”
A capital structure channel of monetary policy (2018, positive): “…that determine a firm’s demand for debt: we include firm size, measured as the natural logarithm of total assets; firm profitability, which we measure as EBITDA over total assets; tangible assets of the firm; and the market-to-book ratio (e.g. Faulkender and Petersen, 2006; Sufi, 2009).”
Does It Matter Who Pays for Bond Ratings? Historical Evidence (2010, neutral): “Thus, the pattern that S&P’s ratings are lower than Moody’s ratings is prevalent in every year of the pre June 1974 period and not driven by any single year.”
The Real Effects of Credit Ratings: The Sovereign Ceiling Channel (2017, background): “There is also evidence that ratings affect firm real decisions (Sufi (2009), Tang (2009), Lemmon and Roberts (2010), Chernenko and Sunderam (2012), and Harford and Uysal (2014)).7 However, it is challenging to deal with omitted variables concerns because changes in ratings are correlated with…”
Do Hedge Funds Trade on Private Information? Evidence from Syndicated Lending and Short-Selling (2011, background): “As pointed out by Drucker and Puri (2008) and Nini, Smith, and Sufi (2009), there are huge problems regarding the identification of covenants in Dealscan.”
Renegotiation of Financial Contracts: Evidence from Private Credit Agreements (2009, methodology): “Further, the SEC requires disclosure of any material changes to 3 Firms are required by the SEC to file material contracts and Nini, Smith, and Sufi (2009) obtain their sample by electronically searching through SEC filings for certain terms that are common to private credit agreements.”
The Effects of Corporate Social Performance on the Cost of Corporate Debt and Credit Ratings (2014, positive): “However, it has been shown by Sufi (2009) that investors are more reluctant to lend to an issuer who has no rating at all.”
Do Regulations Based on Credit Ratings Affect a Firm's Cost of Capital? (2010, methodology): “Ederington, Yawitz, and Roberts (1987) and West (1973) find that credit ratings are significant predictors of yield to maturity.”