How contractual agreement affects CRA incentives and rating biases
Australian Journal of Management
Published online on July 23, 2025
Abstract
Australian Journal of Management, Ahead of Print.
This study investigates if a rating-contingent or performance-contingent contract can better discourage credit rating agencies (CRAs) from disclosing biased ratings, resulting in mitigation of the capital market liability of foreignness (CMLOF). The model ...
This study investigates if a rating-contingent or performance-contingent contract can better discourage credit rating agencies (CRAs) from disclosing biased ratings, resulting in mitigation of the capital market liability of foreignness (CMLOF). The model ...