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Asset Opaqueness and Split Bond Ratings
Author(s) -
Livingston Miles,
Naranjo Andy,
Zhou Lei
Publication year - 2007
Publication title -
financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.647
H-Index - 68
eISSN - 1755-053X
pISSN - 0046-3892
DOI - 10.1111/j.1755-053x.2007.tb00080.x
Subject(s) - asset (computer security) , bond , business , bond credit rating , actuarial science , economics , finance , credit risk , computer science , computer security , credit reference
We examine the relation between asset opaqueness and split ratings. We find that firms with asset opaqueness problems are more likely to receive split bond ratings from Moody s and S&P rating agencies. Our results suggest that there is a causal link between asset opaqueness and split ratings.