Warning Letter of the CSRC on Rating Agencies and Their Responses
This paper examines the consequence of the warning letter issued by the China Securi-ties Regulatory Commission(CSRC)on rating agencies and their responses.We find that pun-ished rating agencies significantly increase the current clients'credit ratings to gain a higher mar-ket share.The results hold under different robustness tests,such as entropy balancing matching.Further analysis shows that the effect is stronger for issuers with important interests and low de-fault risk.This paper systematically analyzes the influence of the CSRC's warning letter on the behavior of rating agencies,which provides empirical evidence for rating agency supervisions in China.
万方数据
维普
