Rating friends: The effect of personal connections on credit ratings

被引：30

作者：

Khatami, Seyed Hossein ^{[1
]}

Marchica, Maria-Teresa ^{[1
]}

Mura, Roberto ^{[1
]}

机构：

[1] Alliance Manchester Business Sch, Crawford House,Booth St East, Manchester M13 9PL, Lancs, England

来源：

JOURNAL OF CORPORATE FINANCE | 2016年 / 39卷

关键词：

Executive and director networks; Credit rating; Asymmetric information; GOVERNANCE; AGENCIES; DECISION; DEBT;

D O I：

10.1016/j.jcorpfin.2016.04.006

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Using a large sample of US public debt issues we show that personal connections between directors of issuing companies and rating agencies result in higher credit ratings. We estimate the average effect to be about one notch. Moreover, our tests indicate that issues by connected firms are 30% more likely to be rated A3. Results are robust to several alternative tests including additional controls for managerial traits, firm fixed effects, and propensity score matching. Furthermore, our tests on default rates and bond yields suggest that personal connections act as a mechanism to reduce asymmetric information between the rating agency and the issuer. (C) 2016 Elsevier B.V. All rights reserved.

引用

页码：222 / 241

页数：20

共 34 条

[1] Implementing matching estimators for average treatment effects in Stata [J].