Should more local governments purchase a bond rating?

Autor:	Arthur C. Allen, George Sanders, Donna Dudney
Rok vydání:	2008
Předmět:	Selection bias Finance Service (business) Actuarial science business.industry media_common.quotation_subject General Business Management and Accounting Corporate finance Credit rating Issuer Accounting Bond credit rating business Proxy (statistics) media_common
Zdroj:	Review of Quantitative Finance and Accounting. 32:421-438
ISSN:	1573-7179 0924-865X
DOI:	10.1007/s11156-008-0095-6
Popis:	We investigate whether issuers that choose to forgo a bond rating suffer an interest cost penalty greater than the cost of the rating. We use estimated ratings provided by Moody’s Investor Service to proxy for what the rating would have been if it had been purchased. We find that the primary factors associated with an issuer’s decision to purchase a rating are the rating expected by the issuer and the extent to which an issue is marketed locally. After controlling for self-selection bias, we find that the issuers that forgo a rating do not suffer an interest cost penalty.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::2b65972c71b17377b1b36a1f1f967858 https://doi.org/10.1007/s11156-008-0095-6 Zobrazit plný text záznamu Full text from SpringerLink