
Credit rating agencies, shock and public expectations
Trouillet, Julien (2015-02), Credit rating agencies, shock and public expectations, AFSE 2015 64th Congress, 2015-06, Rennes, France
Type
Communication / ConférenceDate
2015-02Conference title
AFSE 2015 64th CongressConference date
2015-06Conference city
RennesConference country
FrancePages
16
Metadata
Show full item recordAuthor(s)
Trouillet, JulienAbstract (EN)
This paper studies the behavior of a Credit Rating Agency after a shock. As it has already been discussed, reputation incentives may not be sufficient to discipline a CRA. In a cheap-talk game, I show that a CRA may have incentives to be lax in its ratings when a bubble is about to burst and severe after a shock that has hit its reputation and the economy. The consequences may be severe depending on the economy we are thinking of, emerging markets or an economy with financial disintermediation may be the most threatened. This can be see as one of the factors that may have foster the last financial crisis, especially the south east asian and the subprime ones.Subjects / Keywords
Credit Rating Agency; ReputationRelated items
Showing items related by title and author.
-
Trouillet, Julien (2017-12-13) Thèse
-
Guillemin, François; Alexandre, Hervé; Refait-Alexandre, Catherine (2015-06) Communication / Conférence
-
Hurlin, Christophe; Kierzenkowski, Rafal (2003-04) Communication / Conférence
-
Matheron, Julien; Avouyi-Dovi, Sanvi (2007) Article accepté pour publication ou publié
-
Fève, Patrick; Matheron, Julien; Sahuc, Jean-Guillaume (2010) Article accepté pour publication ou publié