Does it matter who pays for ratings? Yes, but not for the rating agencies’ behavior. These are the findings of our experiment where we analyze the effect of the remuneration model of rating agencies on their assessments as well as on investors’ and issuers’ behavior. First, we find that rating agencies’ assessments are comparable whether the agency is (partially) paid by issuers, investors or solely ...
In:
German Economic Review
16 (2015), 3, 324-342
| Christoph Bühren, Marco Pleßner