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Credit (Rating Agencies)

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Abstract

Credit rating agencies (CRAs) are pivotal players in financial markets, and in fact their conduct has attracted the attention of scholars, media, and policy analysts. A very common claim is that CRA behavior contributed to the explosion and the propagation of the recent financial crisis. This entry sketches the functioning of the market for ratings and explores the market failures by which it is characterized. Moreover, this entry briefly presents some of the proposals advanced by the law and economics literature to induce CRAs to issue accurate ratings.

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Author information

Authors and Affiliations

  1. China-EU School of Law, China University of Political Science and Law, Beijing, China

    Alessandro Romano

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  1. Alessandro Romano
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Correspondence to Alessandro Romano .

Editor information

Editors and Affiliations

  1. Montpellier, France

    Alain Marciano

  2. Dept DiGSPES, Univ del Piemonte Orientale Dept DiGSPES, Alessandria, Italy

    Giovanni Battista Ramello

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Romano, A. (2017). Credit (Rating Agencies). In: Marciano, A., Ramello, G. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7883-6_667-1

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  • DOI: https://doi.org/10.1007/978-1-4614-7883-6_667-1

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  • Print ISBN: 978-1-4614-7883-6

  • Online ISBN: 978-1-4614-7883-6

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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Chapter history

  1. Latest

    Credit: Rating Agencies
    Published:
    26 November 2021

    DOI: https://doi.org/10.1007/978-1-4614-7883-6_667-2

  2. Original

    Credit (Rating Agencies)
    Published:
    22 February 2017

    DOI: https://doi.org/10.1007/978-1-4614-7883-6_667-1

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