The Library
A hard nut to crack : regulatory failure shows how rating really works
Tools
Mennillo, Giulia and Sinclair, Timothy J. (2019) A hard nut to crack : regulatory failure shows how rating really works. Competition & Change, 23 (3). pp. 266-286. doi:10.1177/1024529419833870 ISSN 1024-5294.
|
PDF
WRAP-hard-nut-crack-regulatory-failure-rating-works-Sinclair-2019.pdf - Accepted Version - Requires a PDF viewer. Download (723Kb) | Preview |
Official URL: https://doi.org/10.1177/1024529419833870
Abstract
Credit rating agencies such as Moody’s and Standard & Poor’s are key players in the governance of global financial markets. Given the very strong criticism the rating agencies faced in the wake of the global financial crisis 2008, how can we explain the puzzle of their survival? Market and regulatory reliance on ratings continues, despite the shift from a light-touch to a mandatory system of agency regulation and supervision. Drawing on the analysis of rating agency regulation in the US and the EU before and after the financial crisis, we argue that a pervasive, persistent and, in our view, erroneous understanding of rating has supported the never-ending story of rating agency authority. We show how treating ratings as metrics, private goods, and independent and neutral third-party opinions contributes to the ineffectiveness of rating agency regulation and supports the continuing authoritative standing of the credit rating agencies in market and regulatory practices.
Item Type: | Journal Article | ||||||||
---|---|---|---|---|---|---|---|---|---|
Subjects: | H Social Sciences > HG Finance | ||||||||
Divisions: | Faculty of Social Sciences > Politics and International Studies | ||||||||
Library of Congress Subject Headings (LCSH): | Rating agencies (Finance) -- Law and legislation, Global Financial Crisis, 2008-2009 | ||||||||
Journal or Publication Title: | Competition & Change | ||||||||
Publisher: | Sage Publications Ltd. | ||||||||
ISSN: | 1024-5294 | ||||||||
Official Date: | 1 June 2019 | ||||||||
Dates: |
|
||||||||
Volume: | 23 | ||||||||
Number: | 3 | ||||||||
Page Range: | pp. 266-286 | ||||||||
DOI: | 10.1177/1024529419833870 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Reuse Statement (publisher, data, author rights): | Mennillo, Giulia and Sinclair, Timothy J. (2019) A hard nut to crack : regulatory failure shows how rating really works. Competition & Change . Copyright © 2019 The Authors. Reprinted by permission of SAGE Publications. https://doi.org/10.1177/1024529419833870 | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Date of first compliant deposit: | 6 February 2019 | ||||||||
Date of first compliant Open Access: | 6 February 2019 | ||||||||
Related URLs: |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year