Zur Reform des Rating-(Un)Wesens: Bestandsaufnahme und eine Reform-Option

Beck Hanno () and Wienert Helmut ()
Additional contact information
Beck Hanno: Hochschule Pforzheim, Fakultät für Wirtschaft und Recht, Tiefenbronner Straße 65, D-75175 Pforzheim
Wienert Helmut: Hochschule Pforzheim, Fakultät für Wirtschaft und Recht, Tiefenbronner Straße 65, D-75175 Pforzheim

Review of Economics, 2010, vol. 61, issue 1, 45-67

Abstract: The market for ratings suffers from several inefficiencies: asymmetric information and moral hazard lead to conflicts of interest and principal-agent-problems. Moreover, network externalities and economies of scale lead to a lack of competition in the market for ratings. There is empirical evidence for market inefficiencies as ratingshopping, herding or slow adjustment of wrong ratings to a changed environment. As a remedy for these problems, we suggest a fund where rating-orders are pooled and rated by means of a double-blind-approach. Each issuer of a security gives his product into a pool and rating agencies which meet the standards of the pool are free to tender for the mandate to rate the product. Several aspects how to set up such a pool and possible problems are being addressed in this paper.

Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/roe-2010-0103 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:lus:reveco:v:61:y:2010:i:1:p:45-67

Ordering information: This journal article can be ordered from
https://www.degruyte ... journal/key/roe/html

DOI: 10.1515/roe-2010-0103

Access Statistics for this article

Review of Economics is currently edited by Michael Berlemann

More articles in Review of Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().