The information content of Australian credit ratings: A comparison between subscription and non-subscription credit rating agencies

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dc.contributor.author Chan, Pak en_US
dc.contributor.author Edwards, Vic en_US
dc.contributor.author Walter, Terry en_US
dc.contributor.editor en_US
dc.date.accessioned 2010-05-28T09:53:03Z
dc.date.available 2010-05-28T09:53:03Z
dc.date.issued 2009 en_US
dc.identifier 2008002237 en_US
dc.identifier.citation Chan Pak, Edwards Vic, and Walter Terry 2009, 'The information content of Australian credit ratings: A comparison between subscription and non-subscription credit rating agencies', Elsevier, vol. 33, no. 1, pp. 22-44. en_US
dc.identifier.issn 0939-3625 en_US
dc.identifier.other C1 en_US
dc.identifier.uri http://hdl.handle.net/10453/9949
dc.description.abstract We classify credit rating agencies into two groups: subscribing and non-subscribing. Investors can access (non-subscribing) credit reports released to the public for no charge, or investors can subscribe to the fee-paying (subscribing) credit reports from agencies. Our results suggest that the information content of non-subscribing credit agencies is very low, whereas positive excess returns exist up to eight months after the announcement of credit upgrades from the subscription-only agencies. We support the hypothesis proposed in Grossman and Stiglitz [Grossman, S.J., Stiglitz, J.E., 1976. Information and competitive price systems. The American Economic Review 66, 246?253; Grossman, S.J., Stiglitz, J.E., 1980. On the impossibility of informationally efficient markets. The American Economic Review 70, 393?408]. Investors who spend resources on information acquisition should receive compensation for their information advantage, or there would be no incentive for such activity. en_US
dc.language en_US
dc.publisher Elsevier en_US
dc.title The information content of Australian credit ratings: A comparison between subscription and non-subscription credit rating agencies en_US
dc.parent Economic Systems en_US
dc.journal.volume 33 en_US
dc.journal.number 1 en_US
dc.publocation Netherlands en_US
dc.identifier.startpage 22 en_US
dc.identifier.endpage 44 en_US
dc.cauo.name BUS.School of Finance and Economics en_US
dc.conference Verified OK en_US
dc.for 149900 en_US
dc.personcode 0000048874 en_US
dc.personcode 0000048875 en_US
dc.personcode 104692 en_US
dc.percentage 67 en_US
dc.classification.name Other Economics en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords Credit rating; Event studies; Market efficiency en_US
dc.staffid 104692 en_US


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