Managerial Ability and Credit Risk Assessment

Published Online:https://doi.org/10.1287/mnsc.2015.2403

References

  • Alissa W, Bonsall S, Koharki K, Penn M (2013) Firms’ use of accounting discretion to influence their credit ratings. J. Accounting Econom. 55(2):129–147.CrossrefGoogle Scholar
  • Ashbaugh-Skaife H, Collins D, LaFond R (2006) The effects of corporate governance on firms’ credit ratings. J. Accounting Econom. 42(1):203–243.CrossrefGoogle Scholar
  • Ayers B, Laplante S, McGuire S (2010) Credit ratings and taxes: The effect of book tax differences on ratings changes. Contemporary Accounting Res. 27(2):359–402.CrossrefGoogle Scholar
  • Beaver W, Shakespeare C, Soliman M (2006) Differential properties in the ratings of certified versus non-certified bond-rating agencies. J. Accounting Econom. 42(3):303–334.CrossrefGoogle Scholar
  • Bennedsen M, Pérez-González F, Wolfenzon D (2006) Do CEOs matter? NYU Working Paper FIN-06-032, New York University, New York. http://ssrn.com/abstract=1293659.Google Scholar
  • Bertrand M, Schoar A (2003) Managing with style: The effect of managers on firm policies. Quart. J. Econom. 118(4):1169–1208.CrossrefGoogle Scholar
  • Bhojraj S, Sengupta P (2003) Effect of corporate governance on bond ratings and yields: The role of institutional investors and outside directors. J. Bus. 76(3):455–475.CrossrefGoogle Scholar
  • Blume M, Lim F, MacKinlay A (1998) The declining credit quality of U.S. corporate debt: Myth or reality? J. Finance 53(4):1389–1413.CrossrefGoogle Scholar
  • Cheng M, Subramanyam K (2008) Analyst following and credit ratings. Contemporary Accounting Res. 25(4):1007–1044.CrossrefGoogle Scholar
  • Core J, Guay W (2002) Estimating the value of employee stock option portfolios and their sensitivities to price and volatility. J. Accounting Res. 40(2):613–630.CrossrefGoogle Scholar
  • Dechow P, Dichev I (2002) The quality of accruals and earnings: The role of accrual estimation errors. Accounting Rev. 77(Suppl):35–59.CrossrefGoogle Scholar
  • Demerjian P, Lev B, McVay S (2012) Quantifying managerial ability: A new measure and validity tests. Management Sci. 58(7):1229–1248.LinkGoogle Scholar
  • Demerjian P, Lev B, Lewis M, McVay S (2013) Managerial ability and earnings quality. Accounting Rev. 88(2):463–498.CrossrefGoogle Scholar
  • Fama E, French K (1997) Industry costs of equity. J. Financial Econom. 43(2):153–193.CrossrefGoogle Scholar
  • Fischer P, Verrecchia R (1997) The effect of limited liability on the market response to disclosure. Contemporary Accounting Res. 14(3):515–541.CrossrefGoogle Scholar
  • Francis J, LaFond R, Olsson P, Schipper K (2005) The market pricing of accruals quality. J. Accounting Econom. 39(2):295–327.CrossrefGoogle Scholar
  • Ganguin B, Bilardello J (2005) Standard & Poor’s Fundamentals of Corporate Credit Analysis (McGraw-Hill, New York).Google Scholar
  • Hayes R, Schaefer S (1999) How much are differences in managerial ability worth? J. Accounting Econom. 27(2):125–148.CrossrefGoogle Scholar
  • Horrigan J (1966) The determination of long-term credit standing with financial ratios. J. Accounting Res. 4:44–62.CrossrefGoogle Scholar
  • Jung B, Soderstrom N, Yang Y (2013) Earnings smoothing activities of firms to manage credit ratings. Contemporary Accounting Res. 30(2):645–676.CrossrefGoogle Scholar
  • Kaplan R, Urwitz G (1979) Statistical models of bond ratings: A methodological inquiry. J. Bus. 52(2):231–261.CrossrefGoogle Scholar
  • Kraft P (2015) Do rating agencies cater? Evidence from rating-based contracts. J. Accounting Econom. 59(2–3):264–283.CrossrefGoogle Scholar
  • Kuang YF, Qin B (2013) Credit ratings and CEO risk-taking incentives. Contemporary Accounting Res. 30(4):1524–1559.CrossrefGoogle Scholar
  • Lev B, Sougiannis T (1996) The capitalization, amortization, and value-relevance of R&D. J. Accounting Econom. 21(1):107–138.CrossrefGoogle Scholar
  • Merton R (1974) On the pricing of corporate debt: The risk structure of interest rates. J. Finance 29(2):449–470.Google Scholar
  • Moody’s (2002) Rating policy: Understanding Moody’s corporate bond ratings and rating process. Special comment (May), Moody’s, New York. https://www.moodys.com/sites/products/AboutMoodysRatingsAttachments/2001400000389218.pdf?frameOfRef=corporate.Google Scholar
  • Plummer C, Tse S (1999) The effect of limited liability on the informativeness of earnings: Evidence from the stock and bond markets. Contemporary Accounting Res. 16(3):541–574.CrossrefGoogle Scholar
  • Rajgopal S, Shevlin T, Zamora V (2006) CEOs’ outside employment opportunities and the lack of relative performance evaluation in compensation contracts. J. Finance 61(4):1813–1844.CrossrefGoogle Scholar
  • Securities Industry and Financial Markets Association (2015) Statistics and data pertaining to financial markets and the economy. Accessed February 20, 2015, http://www.sifma.org/research/statistics.aspx.Google Scholar
  • Shleifer A, Vishny R (1997) A survey of corporate governance. J. Finance 52(2):737–783.CrossrefGoogle Scholar
  • Standard & Poor’s (2008) Corporate ratings criteria. Report, Standard & Poor’s, New York.Google Scholar
  • Waller WS, Chow CW (1985) The self-selection and effort effects of standard-based employment contracts: A framework and some empirical evidence. Accounting Rev. 60(3):458–476.Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.