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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF ACCOUNTING AND FINANCE 


Standards, Reputational Costs and Market Share: Empirical Evidence from the Credit Rating Industry


Author(s): Puneet Prakash, Nanda K. Rangan

Citation: Puneet Prakash, Nanda K. Rangan, (2020) "Standards, Reputational Costs and Market Share: Empirical Evidence from the Credit Rating Industry," Journal of Accounting and Finance, Vol. 20, ss. 3, pp. 37-63

Article Type: Research paper

Publisher: North American Business Press

Abstract:

We examine the joint effect of average default risk and uncertainty on behavior of rating agencies. We find when average default risk rises in the economy standards weaken but a simultaneous increase in uncertainty causes the standards to tighten more. The net effect is the documented conservatism in ratings. A trade-off between short term gains in market share and long term costs to reputation provides a consistent explanation for these findings.