2017
DOI: 10.1093/jeea/jvx009
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The Home Bias in Sovereign Ratings

Abstract: Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in… Show more

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Cited by 62 publications
(29 citation statements)
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References 87 publications
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“…Research has recently noted the differences in methodology among credit rating agencies (Fuchs & Gehring, 2013), and our findings further suggest that this is a fruitful avenue for future research, as are the potential differences in reaction between rating agencies and actual investors. The legal independence of the central bank is robustly associated with higher credit ratings by Moody's across all our model specifications.…”
Section: Discussionsupporting
confidence: 58%
See 1 more Smart Citation
“…Research has recently noted the differences in methodology among credit rating agencies (Fuchs & Gehring, 2013), and our findings further suggest that this is a fruitful avenue for future research, as are the potential differences in reaction between rating agencies and actual investors. The legal independence of the central bank is robustly associated with higher credit ratings by Moody's across all our model specifications.…”
Section: Discussionsupporting
confidence: 58%
“…Beaulieu et al (2012) argue that access to credit ratings is also important and run models for selection into the ratings, i.e., they model countries' access to credit in the first stage and the level of the rating in the second stage. Following Beaulieu et al (2012) and Fuchs and Gehring (2013), we include in the first stage, half-decade dummies and the lagged number of countries rated by the credit rating agency worldwide. When taking potential selection into account, our central bank governance measures continue to be statistically significant.…”
Section: Robustnessmentioning
confidence: 99%
“…Home bias affects many aspects of user behavior, including economics, geopolitics, culture, and consumer habits. Users tend to invest in projects that are culturally similar to their respective home countries [26].…”
Section: Studies On Home Biasmentioning
confidence: 99%
“…Prior scholarship extensively examines the political determinants of FDI (for example, Jensen, Biglaiser, Li, Malesky, Pinto, Pinto, and Staats ), and a growing literature looks at how political developments affect sovereign bondholders . Sovereign rating agencies prioritize a country's default history and macroeconomic indicators (Cantor and Packer ; Afonso, Gomes, and Rother ; Archer, Biglaiser, and DeRouen ), but Fuchs and Gehring () find systematic home bias across rating agencies from six countries. Moreover, Biglaiser and Staats () find that judicial quality and the rule of law also affect ratings.…”
Section: The Politics Of Bond Spreadsmentioning
confidence: 99%