主题： Credit Rating Inflation and Firms’ Investments（信用评级通胀与公司投资）
主讲人：Chong Huang, 加州大学欧文分校金融学助理教授
日期：2018年4月11日（周三）
时间：上午10:00 - 11:30
地点：德州扑克大小
金融德州扑克大小
4号楼101教室
语言：英文
摘要：
We analyze credit ratings' effects on
firms' investments in a rational debt-rollover game that features a feedback
loop. The credit rating agency (CRA) has an inherent incentive to inflate the
rating, providing a biased but informative signal to investors. Investors'
response to the rating affects the firm's cost of capital, investment decision,
and credit quality, and this is reflected in the initial rating. The CRA might
reduce ex-ante economic efficiency, and this comes solely as a result of the
feedback effect of the rating: The CRA understands the effect of the
information it provides and allows more firms to gamble for resurrection. We
derive empirical predictions on the determinants of rating standards and rating
inflation, and discuss policy that could potentially avoid the
inefficiency.
主讲人简介:
Chong
Huang joined The Paul Merage School of Business in July 2012 as an
Assistant Professor of Finance. His research interests include learning in
financial markets, corporate finance, and financial crises. Before joining
The Merage School, Professor Huang received his PhD degree in Economics from
the University of Pennsylvania. He received a Bachelor degree in Finance from
Peking University and a Master’s degree in Economics from the Chinese
University of Hong Kong.
