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For credit rating agencies, reputation matters
College PARK, Pa. — Opposite to common belief, credit score score agencies deliver far more exact, well timed, conservative and educational credit score scores for greater-chance companies — a discovery that phone calls into issue the standard wisdom that they cater to their clientele, according to new exploration by a workforce of Penn State researchers in the Smeal Faculty of Business enterprise. Sam Bonsall, Deloitte & Touche Teaching Excellence Professor in Accounting, and Karl Muller, Robert and Sandra Poole Faculty Fellow in Accounting, alongside with colleagues at Harvard Business University, HEC Paris and Purdue College, a short while ago posted a paper detailing these results in Management Science. “The evidence…