News Column

Recent Findings in General Finance Described by Researchers from Southern Methodist University (Upfront versus rating contingent fees: Implications...

July 26, 2014



Recent Findings in General Finance Described by Researchers from Southern Methodist University (Upfront versus rating contingent fees: Implications for rating quality)

By a News Reporter-Staff News Editor at Investment Weekly News -- Fresh data on General Finance are presented in a new report. According to news originating from Dallas, Texas, by VerticalNews editors, the research stated, "This paper theoretically investigates whether compensating a credit rating agency (CRA) with an upfront fee, rather than a rating contingent fee, can improve rating quality."

Our news journalists obtained a quote from the research from Southern Methodist University, "I show that an upfront fee delivers the same rating quality as the rating contingent fee if the CRA sets its rating policy before the issuer solicits a rating, whereas it can potentially improve quality if the rating policy is set only after a rating is solicited."

According to the news editors, the research concluded: "These results suggest that the 'Franken Amendment' that has been removed from the Dodd-Frank Act might be crucial for the proposed upfront fee regime to improve rating quality."

For more information on this research see: Upfront versus rating contingent fees: Implications for rating quality. Finance Research Letters, 2014;11(2):91-103. Finance Research Letters can be contacted at: Academic Press Inc Elsevier Science, 525 B St, Ste 1900, San Diego, CA 92101-4495, USA. (Elsevier - www.elsevier.com; Finance Research Letters - www.elsevier.com/wps/product/cws_home/672908)

The news correspondents report that additional information may be obtained from S. Ozerturk, Southern Methodist University, Dept. of Econ, Dallas, TX 75275, United States.

Keywords for this news article include: Texas, Dallas, United States, General Finance, North and Central America

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Investment Weekly News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters