Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Since the beginning of the 21st century, most financial instruments have become increasingly complex. Consequently, investors without any particular knowledge or experience in the finance area encounter some difficulties in making the right investment decisions. To address this issue, credit rating agencies (CRAs, for short) assess the creditworthiness (or ability to meet financial obligations) of issuers or securities by determining a rating in the form of a letter grade. However, since every institution possesses its own methodology, divergences in opinion (also called “split ratings”) can arise. The aim of this dissertation is therefore to evaluate the impact of the financial and accounting characteristics of the companies rated on the occurrence of such split ratings. 
Firstly, this paper describes the context in which CRAs operate and defines related concepts such as credit risk, rating migration (or transition) and so on. Also, the two institutions chosen for the purposes of this study (Standard & Poor’s and Moody’s) are presented in more details with the potential differences in methodology and in interpretation of ratings. Then, an empirical study is realized on a sample composed of 134 companies of the STOXX® Europe 600 index for which the necessary financial characteristics and long-term issuers ratings are available. Econometrics models are employed thereafter and a comparison is made in order to answer the research question of this dissertation.
Finally, the results of the different models have shown that the occurrence of split ratings is indeed impacted by some business-related characteristics. By way of introduction, it was discovered that Standard & Poor’s was more influenced by the leverage while Moody’s takes rather the total revenue into account. Most importantly, the outcomes of the study proved that the net income, total assets, current assets, market capitalization and liquidity affected the probability of split ratings. The most striking finding was that the occurrence of split ratings was substantially higher for banks than for other companies. Nonetheless, the realization of this study has highlighted some limitations and inconsistencies that require further research.

Credit rating agencies --- Split ratings --- Financial characteristics --- Rating --- Sciences économiques & de gestion > Finance

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper discusses the key regulatory, market and political failures that led to the 2008-2009 United States financial crisis. While Congress was fixing the Savings and Loan crisis, it failed to give the regulator of Fannie Mae and Freddie Mac normal bank supervisory power. This was a political failure as Congress was appealing to narrow constituencies. In the mid-1990s, to encourage home ownership, the Administration changed enforcement of the Community Reinvestment Act, effectively requiring banks to lower bank mortgage standards to underserved areas. Crucially, the risky mortgage standards then spread to other sectors of the market. Market failure problems ensued as banks, mortgage brokers, securitizers, credit rating agencies, and asset managers were all plagued by problems such as moral hazard or conflicts of interest. The author explains that financial deregulation of the past three decades is unrelated to the financial crisis, and makes several recommendations for regulatory reform.

Access to Finance --- Asset managers --- Bankruptcy and Resolution of Financial Distress --- Banks & Banking Reform --- Brokers --- Conflicts of interest --- Credit rating --- Credit rating agencies --- Debt Markets --- Developing countries --- Emerging Markets --- Federal Reserve --- Finance and Financial Sector Development --- Financial Crisis --- Financial institutions --- Home mortgages --- Home ownership --- International Bank --- Loan --- Market failure --- Market Failures --- Moral hazard --- Mortgage --- Political economy --- Private Sector Development --- Reinvestment --- Supervisory power

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This book is a primer on corporate governance for large, publicly held companies in the United States, the system that defines the distribution of rights and responsibilities among different participants in a corporation, such as the board, managers, shareholders, and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. As with any complex system, corporate governance functions best when all of its constituent elements work in harmony, when each performs its assigned role, with the right incentives, properly aligned interests, and the right tools for the job. The turbulent history of corporate governance in recent years is testimony that this has not always been the case.

Corporate governance. --- corporate governance --- boards of directors --- shareholders --- stakeholders --- capitalism --- Sarbanes-Oxley --- Dodd-Frank --- regulation --- security and exchange commission --- New York Stock Exchange --- NASDAQ stock exchange --- auditors --- security analysts --- credit rating agencies --- CEO succession planning --- CEO evaluation --- CEO compensation --- strategy --- management --- oversight --- audit committee --- nominating committee --- compensation committee --- takeovers --- risk management --- shareholder activism --- corporate social responsibility --- global convergence --- chairman of the board --- lead director

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Young people, hardest hit by the global economic downturn, are speaking out and demanding change. F&D looks at the need to urgently address the challenges facing youth and create opportunities for them. Harvard professor David Bloom lays out the scope of the problem and emphasizes the importance of listening to young people in "Youth in the Balance." "Making the Grade" looks at how to teach today's young people what they need to get jobs. IMF Deputy Managing Director, Nemat Shafik shares her take on the social and economic consequences of youth unemployment in our "Straight Talk" column. "Scarred Generation" looks at the effects the global economic crisis had on young workers in advanced economies, and we hear directly from young people across the globe in "Voices of Youth." Renminbi's rise, financial system regulation, and boosting GDP by empowering women. Also in the magazine, we examine the rise of the Chinese currency, look at the role of the credit rating agencies, discuss how to boost the empowerment of women, and present our primer on macroprudential regulation, seen as increasingly important to financial stability. People in economics - C. Fred Bergsten, American Globalist Back to basics - The multi-dimensional role of banks in our financial systems.

Finance: General --- Labor --- Macroeconomics --- Money and Monetary Policy --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Education: General --- Economics of Gender --- Non-labor Discrimination --- Unemployment: Models, Duration, Incidence, and Job Search --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Finance --- Labour --- income economics --- Education --- Monetary economics --- Gender studies --- women & girls --- Credit rating agencies --- Women --- Unemployment --- Credit ratings --- Money --- United States --- Income economics --- Women & girls

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Young people, hardest hit by the global economic downturn, are speaking out and demanding change. F&D looks at the need to urgently address the challenges facing youth and create opportunities for them. Harvard professor David Bloom lays out the scope of the problem and emphasizes the importance of listening to young people in "Youth in the Balance." "Making the Grade" looks at how to teach today's young people what they need to get jobs. IMF Deputy Managing Director, Nemat Shafik shares her take on the social and economic consequences of youth unemployment in our "Straight Talk" column. "Scarred Generation" looks at the effects the global economic crisis had on young workers in advanced economies, and we hear directly from young people across the globe in "Voices of Youth." Renminbi's rise, financial system regulation, and boosting GDP by empowering women. Also in the magazine, we examine the rise of the Chinese currency, look at the role of the credit rating agencies, discuss how to boost the empowerment of women, and present our primer on macroprudential regulation, seen as increasingly important to financial stability. People in economics - C. Fred Bergsten, American Globalist Back to basics - The multi-dimensional role of banks in our financial systems.

Finance: General --- Labor --- Macroeconomics --- Money and Monetary Policy --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Education: General --- Economics of Gender --- Non-labor Discrimination --- Unemployment: Models, Duration, Incidence, and Job Search --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Finance --- Labour --- income economics --- Education --- Monetary economics --- Gender studies --- women & girls --- Credit rating agencies --- Women --- Unemployment --- Credit ratings --- Money --- United States --- Income economics --- Women & girls