Differential Properties in the Ratings of Certified vs. Non-Certified Bond Rating Agencies
By: William H Beaver/Stanford University, Catherine Shakespere & Mark T. Soliman/University Of Michigan |
Stanford University and University of Michigan studies
Direct excerpts and conclusions:
Credit ratings from Egan-Jones more accurately reflect information in the marketplace and are frequently up to 237 days ahead of actions taken by Moody’s and S&P.
The powerful market incentives resulting from the investor supported, independent business model of Egan-Jones Ratings Company produces more timely and accurate ratings with predictive value.
William H Beaver, Graduate School of Business, Stanford University, Stanford, CA 94305
Catherine Shakespere, Mark T. Soliman, University of Michigan, Ann Arbor, MI 48109
First version 2003, Second version, June 2006.