Volume 2, Issue 6, December 2013, Page: 169-173
The Criticality of the Rating Market Views through Greece
Maria Pompò, University “ Giustino fortunato”Benevento via Del Cogliano, Researcher in Political Economy. I deal whith monetary policy, Professor in Economic Policy “ Giustino fortunato” Benevento, Professor in Environmental Economics University “ LUSPIO” ROMA
Received: Oct. 2, 2013;       Published: Jan. 10, 2014
DOI: 10.11648/j.ijber.20130206.16      View  2433      Downloads  88
Abstract
The article highlights the limits rating criteria, that after the crisis of 2007 is to influence more and more the operation of financial markets, but also the economic policies of national governments. The work indicates the critical market rating which presents itself as an oligopolistic market.After, in this paper we examine the determinants of credit rating in the Greece issued by agencies such as S&P. The objective of this paper is to analyze a statistic index which is actually the result of unknown algorithms. Therefore, taking a time series variables and choices appropriate to the model, we apply a GARCH model to estimate the economic result of the rating. Although the economic literature there are many contributions (Rowland and Torres 2004, Peter Rowland 2006), most uses of the panel in probit models. However, differences in economic variables from country to country choices in the model do not permit a more uniform result in order to capture the true rating of Greece.
Keywords
Rating, Financial Markets
To cite this article
Maria Pompò, The Criticality of the Rating Market Views through Greece, International Journal of Business and Economics Research. Vol. 2, No. 6, 2013, pp. 169-173. doi: 10.11648/j.ijber.20130206.16
Reference
[1]
Alchian A.A., Demsetz H. (1972), Production, Information Costs, and Economic Organization, in American Economic Review, Vol. 65 n. 5.
[2]
Altman E.I., Rijken H.A. (2005), The Effects of Rating Through the Cycle on Rating Stability, Rating Timeliness and Default Prediction Performance, NYU Working Paper N. FIN-05.004 March.
[3]
Baker A., Hudson D., Woodward R. (2005), Governing financial globalization: international political economy and multi-level governance, London Routledge
[4]
Bannier C.E., Tyrel M. (2006), Modelling the role of credit rating agencies - Do they spark off a virtuous circle?, Working Paper, Goethe University, Frankfurt am Main n. 160.
[5]
Becker B., Milbourn T. (2008), Reputation and Competition: Evidence from the Credit Rating Industry, mimeo Boston Harvard Business School Working Paper n. 09-051.
[6]
Best J. (2009), The Limits of Financial Risk Management: or, "What We Didn’t Learn From the Asian Crisis" Discussion Paper, International Studies Association Conference, New York, February.
[7]
Bolton P., Freixas X., Shapiro, J. (2009), The Credit Rating Game, NBER Working Paper n. 14712.
[8]
Buchanan G.M., Tullock G. (1962), The Calculus of Consent. Logical Foundations of Constitutional Democracy, University of Michigan Press.
[9]
Cannata F. (2002), La componente quantitative dei rating delle agenzie: alcune evidenze empiriche, (The quantitative component of the ratings of agencies: some empirical evidence) LUISS Edizioni.
[10]
Champsaur A.(2005), The Regulation of Credit Rating Agencies In the U.S. and the E.U, Recent Initiatives and Proposals, Harvard Law School.
[11]
Coffee J.C. (2004), Gatekeepers, The Professions and Corporate Governance, Oxford.
[12]
Frost C.A. (2006), Credit Rating Agencies in Capital Markets: A Review of Research Evidence on Selected criticism of the Agencies, Working Paper, March.
[13]
Gertler M., Keradi P. (2011), "A model of unconventional monetary policy", Journal of Monetary Economics, vol. 58.
[14]
Gertler M., Kiyotaki N. (2010), "Financial Intermediation and Credit Policy in Business Cycle Analysis" in Friedman, B. and Woodford, M. (ed.), Handbook of Monetary Economics, vol.3, North-Holland, Amsterdam.
[15]
Gurtey J. G., Shaw E. S. (1960), Money in a Theory of Finance, The Brookings Institution, Washington, D.C.
[16]
16)Gerali A., Neri S., Sessa L., Signoretti F., (2010), "Credit and Banking in a DGSE model of the euro area", Journal of Money, Credit and Banking, supplement to vol. 42. September.
[17]
Jensen M. C., Meckling W.H. (1976), Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics, vol.3.
[18]
Hamilton D.T., James J., Webber N. (2001), Copula Methods and the Analysis of Credit Risk, Working Paper Series, January.
[19]
Hayes K., Wood L. L. (2005), Utility Maximizing Bureaucrats: The Bureaucrat’s Point of View, Public Choice Journal, January.
[20]
Hardy D. (2006), Regulatory Capture in Banking, IMF Working Paper, January.
[21]
Hill C. A. (2004), Regulating the Rating Agencies, in Washington University Law Quarterly, Vol. 82.
[22]
Howard R.A. (1971), Dynamic Probabilistic Systems, New York.
[23]
Kempf H., Moizeau F. (2000), Conspicuous Consumption, Social Status and Clubs, FEEM Working Paper n. 58, July.
[24]
Kranton R.E.(2003), Competition and the Incentive to Produce High Quality, in Economica, Vol.70.
[25]
Kraft Pepa .(2009), Rating agency adjustments to GAAP financial statements and their effect on ratings and bond yields, AAA 2009 Financial Accounting and Reporting Section (FARS) Paper,28 february 2009,pp. 2-6.
[26]
Jullien B., Salaniè B., Salaniè F. (2001), Screening Risk-averse Agents Under Moral Hazard, mimeo IDEI Toulouse.
[27]
Lee, in Ho.(2007), Competition in the Credit Rating Industry, Working paper Seoul National University.
[28]
Linciano N.(2004), L’impatto sui prezzi azionari delle revisioni dei giudizi delle agenize di rating. Evidenza per il caso italiano, (The impact of the revisions of the judgements of ratings agencies on stock prices. Evidence for the Italian case.) Quaderni di finanza, Consob n.57, June.
[29]
Moody’s, Annual Report, 2008.
[30]
Myerson R.B. (1991), Game Theory, Analysis of Conflict, Cambridge University.
[31]
Renhart C., Rogoff K. (2008), Regulation should be international, in Financial Times, 18 November.
[32]
SEC (2009), Draft Strategic Plan for Comment.
[33]
SEC (2009), Annual Report on Nationally Recognized Statistical Rating Organizations (NRSRO), September.
[34]
Stiglitz J.E. (2008), "Principal and agent" (ii) in The New Palgrave Dictionary of Economics, Second Edition, eds. Steven N. Durlauf and Lawrence E. Blume, Palgrave Macmillan.
[35]
SyA.N.R.( 2009), The Systemic Regulation of Credit Rating Agencies and rated Markets, IMF working Paper n. 09/129.
Browse journals by subject