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Korean J Financ Stud > Volume 46(4); 2017 > Article
Korean Journal of Financial Studies 2017;46(4):755-783.
DOI: https://doi.org/10.26845/KJFS.2017.    Published online September 30, 2017.
Rating Shopping and Incentive Scheme
Yunyeong Jung, Rae Soo Park
회사채 등급상승과 유인구조
정윤영, 박래수
This study examines the cause of bond rating upgrade, using bond rating data in Korea. We find that the prior split rating which indicates information asymmetry has a significant positive relationship with the rating upgrade, which supports the information asymmetry hypothesis that solving information asymmetry according to additional information inflow will result in the rating change. And we also find that changing conservative CRAs results in the rating upgrade, thereby being judged to support the incentive scheme hypothesis. Furthermore, changing CRAs is more likely accompanied by the rating upgrade in the case of information asymmetry, which supports the joint hypothesis. Our findings suggest that the rating upgrade should be considered not only by an issuer’s improved ability of repayment, but also by the possibility of incentives of bond issuers and/or CRAs.
Key Words: 신용평가,등급상승,신용평가사 교체,정보비대칭,유인구조,Credit Bond Rating,Rating Shopping,CRAs Change,Information Asymmetry,Incentive Scheme
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