Follow the money: Investor trading around investor-paid credit rating changes

被引：10

作者：

Bhattacharya, Utpal ^{[1
]}

Wei, Kelsey D. ^{[2
]}

Xia, Han ^{[2
]}

机构：

[1] Hong Kong Univ Sci & Technol, Dept Finance, Clear Water Bay, Hong Kong, Peoples R China

[2] Univ Texas Dallas, Naveen Jindal Sch Management, Richardson, TX 75083 USA

来源：

JOURNAL OF CORPORATE FINANCE | 2019年 / 58卷

关键词：

Investor-paid credit rating agencies; Credit ratings; Capital market regulation; MUTUAL FUND PERFORMANCE; INSTITUTIONAL INVESTORS; MARKET ACCESS; BOND; ANALYSTS; RECOMMENDATIONS; PERSISTENCE;

D O I：

10.1016/j.jcorpfin.2019.04.008

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Using institutional equity trading data, we find that a set of small institutional investors consistently follow credit ratings issued by an investor-paid rating agency in their trading decisions. Although rating information is credit related, we find that these followers often respond more strongly to investor-paid ratings than to influential trading signals, such as earnings announcements, analysts' earnings forecast revisions, and recommendation changes. Followers outperform non-followers, and show improved trading performance after becoming followers. We conclude that investor-paid rating agencies offer small institutional investors a cost-effective alternative to in-house research.

引用

页码：68 / 91

页数：24

共 39 条

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