Multiple credit ratings and liquidity creation
Date
01/05/2022Metadata
Show full item recordAbstract
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.
Citation
Kladakis , G , Chen , L & Bellos , S K 2022 , ' Multiple credit ratings and liquidity creation ' , Finance Research Letters , vol. 46 , no. A , 102313 . https://doi.org/10.1016/j.frl.2021.102313
Publication
Finance Research Letters
Status
Peer reviewed
ISSN
1544-6123Type
Journal article
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