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The Valuation of Foreign and Domestic Income by Credit Rating Agencies

Choi, Sunhwa (2011) The Valuation of Foreign and Domestic Income by Credit Rating Agencies. Working Paper. Lancaster University, Lancaster. (Unpublished)

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    Abstract

    I investigate whether credit rating agencies distinguish between foreign and domestic income in their rating decisions. I further examine whether credit rating agencies fully incorporate the information in foreign and domestic income about future performance into their ratings. I find that rating agencies do not distinguish between foreign and domestic income, despite the higher persistence of foreign income in predicting future earnings. As a result, rating agencies underestimate the persistence of foreign income; however, this underestimation of foreign income is significantly reduced after SFAS 131.

    Item Type: Monograph (Working Paper)
    Subjects: H Social Sciences > HG Finance
    Departments: Lancaster University Management School > Accounting & Finance
    ID Code: 56186
    Deposited By: ep_importer_pure
    Deposited On: 17 Jul 2012 16:53
    Refereed?: No
    Published?: Unpublished
    Last Modified: 10 Apr 2014 02:42
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/56186

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