Abstract
In a large sample of sovereign debt issues, we show that a personal connection between senior executives in credit rating agencies and leading politicians in the sovereign results in an improved rating. A test on bond yields suggest that the personal connection reflects a favorable treatment of the issuer.
Original language | English |
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Article number | 101194 |
Journal | Finance Research Letters |
Volume | 33 |
Early online date | 20 May 2019 |
DOIs | |
Publication status | Published - Mar 2020 |
Keywords
- Information asymmetries
- Personal connections
- Sovereign credit ratings
Profiles
-
Yurtsev Uymaz
- Norwich Business School - Associate Professor in Finance
- Finance Group - Member
Person: Research Group Member, Academic, Teaching & Research