Research Output
Multiple credit ratings and liquidity creation
  We examine the relationship between multiple credit rating purchases by banks and liquidity creation using a diverse sample of 486 banks from 71 countries. We show that liquidity creation is negatively associated with the number of ratings purchased by the bank, and that capital can positively moderate this relationship, allowing banks that obtain more ratings to create more liquidity.

  • Type:

    Article

  • Date:

    14 July 2021

  • Publication Status:

    Published

  • Publisher

    Elsevier BV

  • DOI:

    10.1016/j.frl.2021.102313

  • Cross Ref:

    10.1016/j.frl.2021.102313

  • ISSN:

    1544-6123

  • Funders:

    Historic Funder (pre-Worktribe)

Citation

Kladakis, G., Chen, L., & Bellos, S. K. (2022). Multiple credit ratings and liquidity creation. Finance Research Letters, 46(A), Article 102313. https://doi.org/10.1016/j.frl.2021.102313

Authors

Keywords

Banks, Rating agencies, Multiple credit ratings, Liquidity creation

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