Three essays on credit ratings

This thesis focuses on preliminary ratings, studying Credit Rating Agencies (CRAs) decisions in the light of different disclosure regulations. To begin, a brief introduction provides the rationale for these studies. Chapter 1 models the strategic interaction between a monopolistic CRA and an entrepr...

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Main Author: Ronchetti, Marta Allegra
Format: Thesis (University of Nottingham only)
Language:English
Published: 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/48537/
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author Ronchetti, Marta Allegra
author_facet Ronchetti, Marta Allegra
author_sort Ronchetti, Marta Allegra
building Nottingham Research Data Repository
collection Online Access
description This thesis focuses on preliminary ratings, studying Credit Rating Agencies (CRAs) decisions in the light of different disclosure regulations. To begin, a brief introduction provides the rationale for these studies. Chapter 1 models the strategic interaction between a monopolistic CRA and an entrepreneur. The results have three main implications. First, consistently with a strand of the literature, disclosure is not necessarily welfare improving. Second, disclosure policies and regulation cannot be a one off decision, they require tailoring and timely revisions. Thirdly, for disclosure to be effective, the rating process needs to be as accurate as possible. Chapter 2 models a competitive situation, whereby the emphasis is on the effort choice made by the CRAs. The results have a few implications. First, if financial products are complex, mandatory disclosure has no effect. Second, in bad times, mandatory disclosure gives the second contacted CRA the incentives to invest in information. Overall, disclosure never results in more information in the system. Chapter 3 fulfils the role of drawing a junction among economic literature, policy proposals and CRA regulation in order to identify the problems which have been dealt with, the successes and failures and the upcoming challenges.
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spelling nottingham-485372025-02-28T13:56:42Z https://eprints.nottingham.ac.uk/48537/ Three essays on credit ratings Ronchetti, Marta Allegra This thesis focuses on preliminary ratings, studying Credit Rating Agencies (CRAs) decisions in the light of different disclosure regulations. To begin, a brief introduction provides the rationale for these studies. Chapter 1 models the strategic interaction between a monopolistic CRA and an entrepreneur. The results have three main implications. First, consistently with a strand of the literature, disclosure is not necessarily welfare improving. Second, disclosure policies and regulation cannot be a one off decision, they require tailoring and timely revisions. Thirdly, for disclosure to be effective, the rating process needs to be as accurate as possible. Chapter 2 models a competitive situation, whereby the emphasis is on the effort choice made by the CRAs. The results have a few implications. First, if financial products are complex, mandatory disclosure has no effect. Second, in bad times, mandatory disclosure gives the second contacted CRA the incentives to invest in information. Overall, disclosure never results in more information in the system. Chapter 3 fulfils the role of drawing a junction among economic literature, policy proposals and CRA regulation in order to identify the problems which have been dealt with, the successes and failures and the upcoming challenges. 2018-03-15 Thesis (University of Nottingham only) NonPeerReviewed application/pdf en arr https://eprints.nottingham.ac.uk/48537/8/Thesis_Ronchetti_Final.pdf Ronchetti, Marta Allegra (2018) Three essays on credit ratings. PhD thesis, University of Nottingham. Credit ratings Disclosure of information
spellingShingle Credit ratings
Disclosure of information
Ronchetti, Marta Allegra
Three essays on credit ratings
title Three essays on credit ratings
title_full Three essays on credit ratings
title_fullStr Three essays on credit ratings
title_full_unstemmed Three essays on credit ratings
title_short Three essays on credit ratings
title_sort three essays on credit ratings
topic Credit ratings
Disclosure of information
url https://eprints.nottingham.ac.uk/48537/