Regulation of Credit Rating Agencies - Evidence from Recent Crisis

Mai Hassan () and Christian Kalhoefer ()
Additional contact information
Mai Hassan: Faculty of Management Technology, The German University in Cairo
Christian Kalhoefer: Faculty of Management Technology, The German University in Cairo

No 26, Working Papers from The German University in Cairo, Faculty of Management Technology

Abstract: The importance of ratings for investors’ decisions and for the perceptions of the financial health of a nation pointed out the need that credit rating agencies should be regulated in some way. Regulators and market participants believed that the credit rating agencies need to abide by standards of corporate governance and supervision due to their pivotal role in the US subprime crisis. This belief was amplified recently because the rating agencies were deeply involved in the European debt crisis after various sovereign debt ratings were significantly downgraded. Therefore, the paper highlights the critique against the agencies’ role in the two most recent crises and reviews the regulation proposals which subject the rating agencies to behavioral standards.

Keywords: Credit rating agencies; subprime; Euro crisis (search for similar items in EconPapers)
JEL-codes: G15 G24 G38 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2011-02
New Economics Papers: this item is included in nep-ban, nep-pke, nep-reg and nep-rmg
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://mgt.guc.edu.eg/wpapers/026hassan_kalhoefer2011.pdf First version, 2011 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:guc:wpaper:26

Access Statistics for this paper

More papers in Working Papers from The German University in Cairo, Faculty of Management Technology Contact information at EDIRC.
Bibliographic data for series maintained by Dr.Dina Yousri ().