SHOULD ALL TAX-EXEMPT BORROWERS WITH INVESTMENT-GRADE QUALITY ACQUIRE CREDIT RATINGS?

SHOULD ALL TAX-EXEMPT BORROWERS WITH INVESTMENT-GRADE QUALITY ACQUIRE CREDIT RATINGS?

Credit ratings help reveal and certify borrowers' quality in a market with information asymmetry. Examination is offered of the quality revelation and certification values of a bond rating in the tax-exempt bond market in which a high percentage of new issues are not rated. It is shown that lar...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Journal of business finance & accounting 1993-01, Vol.20 (2), p.291-306
Hauptverfasser: HSUEH, L. PAUL, LIU, Y. ANGELA
Format: Artikel
Sprache:eng
Schlagworte:
Bond issues
Bond markets
Bond ratings
Bonds
Credit
Credit ratings
Statistical analysis
Stock exchange
Studies
Tax exempt organizations
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
container_end_page 306
container_issue 2
container_start_page 291
container_title Journal of business finance & accounting
container_volume 20
creator HSUEH, L. PAUL
LIU, Y. ANGELA
description Credit ratings help reveal and certify borrowers' quality in a market with information asymmetry. Examination is offered of the quality revelation and certification values of a bond rating in the tax-exempt bond market in which a high percentage of new issues are not rated. It is shown that larger borrowers whose bond issues are targeted at national markets benefit more from acquiring a bond rating than smaller/local borrowers. The findings not only provide a plausible explanation why investment-grade quality borrowers may choose not to acquire a credit rating, but also are consistent with the observation that most nonrated tax-exempt bonds are relatively small in issue size.
doi_str_mv 10.1111/j.1468-5957.1993.tb00666.x
format Article
fullrecord <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_miscellaneous_839282990</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>573272</sourcerecordid><originalsourceid>FETCH-LOGICAL-c3571-db89b3e347a0584e3f1f64cc6ae9723070225adf66853a879dd62695dec790bd3</originalsourceid><addsrcrecordid>eNqVkU1P20AQhlcVSA3Q_7CiB05298Pej16QSRbHyCTFXifpaeXYaykhEOpN1PDvayuIAxKHzmUO87zvjOYF4BIjH3f1Y-3jgAkvlCH3sZTU3y0RYoz5hy9g8D46AQNEEfOYYIuv4My5NUKIYMYHoMjH0yIdwShNoY4Wnlqo-18a3kyzbDpXWQ7niR7DZDJTub5XE-3FWTRS8KGI0kT_htHwoUgyBYeZGiUaZpFOJnF-fQFOm3Lj7Le3fg6KW6WHYy-dxskwSr2Khhx79VLIJbU04CUKRWBpgxsWVBUrreSEIo4ICcu6YUyEtBRc1jUjTIa1rbhEy5qeg6uj70u7_bO3bmeeVq6ym035bLd7ZwSVRBApUUdefiDX23373B1nCOWIBiKQHfT9MwgTSbAQlOKO-nmkqnbrXGsb89Kunsr21WBk-lTM2vSvN_3rTZ-KeUvFHDrx9VH8d7Wxr_-hNHc3txGR_Xrv6LByO3t4dyjbR8M45aGZT2KT381mQovYpPQf4I2a-A</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1292188331</pqid></control><display><type>article</type><title>SHOULD ALL TAX-EXEMPT BORROWERS WITH INVESTMENT-GRADE QUALITY ACQUIRE CREDIT RATINGS?</title><source>EBSCO Business Source Complete</source><source>Wiley Blackwell Single Titles</source><source>Periodicals Index Online</source><creator>HSUEH, L. PAUL ; LIU, Y. ANGELA</creator><creatorcontrib>HSUEH, L. PAUL ; LIU, Y. ANGELA</creatorcontrib><description>Credit ratings help reveal and certify borrowers' quality in a market with information asymmetry. Examination is offered of the quality revelation and certification values of a bond rating in the tax-exempt bond market in which a high percentage of new issues are not rated. It is shown that larger borrowers whose bond issues are targeted at national markets benefit more from acquiring a bond rating than smaller/local borrowers. The findings not only provide a plausible explanation why investment-grade quality borrowers may choose not to acquire a credit rating, but also are consistent with the observation that most nonrated tax-exempt bonds are relatively small in issue size.</description><identifier>ISSN: 0306-686X</identifier><identifier>EISSN: 1468-5957</identifier><identifier>DOI: 10.1111/j.1468-5957.1993.tb00666.x</identifier><language>eng</language><publisher>Oxford, UK: Blackwell Publishing Ltd</publisher><subject>Bond issues ; Bond markets ; Bond ratings ; Bonds ; Credit ; Credit ratings ; Statistical analysis ; Stock exchange ; Studies ; Tax exempt organizations</subject><ispartof>Journal of business finance &amp; accounting, 1993-01, Vol.20 (2), p.291-306</ispartof><rights>Copyright Blackwell Publishers Jan 1993</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c3571-db89b3e347a0584e3f1f64cc6ae9723070225adf66853a879dd62695dec790bd3</citedby><cites>FETCH-LOGICAL-c3571-db89b3e347a0584e3f1f64cc6ae9723070225adf66853a879dd62695dec790bd3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://onlinelibrary.wiley.com/doi/pdf/10.1111%2Fj.1468-5957.1993.tb00666.x$$EPDF$$P50$$Gwiley$$H</linktopdf><linktohtml>$$Uhttps://onlinelibrary.wiley.com/doi/full/10.1111%2Fj.1468-5957.1993.tb00666.x$$EHTML$$P50$$Gwiley$$H</linktohtml><link.rule.ids>314,780,784,1416,27860,27915,27916,45565,45566</link.rule.ids></links><search><creatorcontrib>HSUEH, L. PAUL</creatorcontrib><creatorcontrib>LIU, Y. ANGELA</creatorcontrib><title>SHOULD ALL TAX-EXEMPT BORROWERS WITH INVESTMENT-GRADE QUALITY ACQUIRE CREDIT RATINGS?</title><title>Journal of business finance &amp; accounting</title><description>Credit ratings help reveal and certify borrowers' quality in a market with information asymmetry. Examination is offered of the quality revelation and certification values of a bond rating in the tax-exempt bond market in which a high percentage of new issues are not rated. It is shown that larger borrowers whose bond issues are targeted at national markets benefit more from acquiring a bond rating than smaller/local borrowers. The findings not only provide a plausible explanation why investment-grade quality borrowers may choose not to acquire a credit rating, but also are consistent with the observation that most nonrated tax-exempt bonds are relatively small in issue size.</description><subject>Bond issues</subject><subject>Bond markets</subject><subject>Bond ratings</subject><subject>Bonds</subject><subject>Credit</subject><subject>Credit ratings</subject><subject>Statistical analysis</subject><subject>Stock exchange</subject><subject>Studies</subject><subject>Tax exempt organizations</subject><issn>0306-686X</issn><issn>1468-5957</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1993</creationdate><recordtype>article</recordtype><sourceid>K30</sourceid><recordid>eNqVkU1P20AQhlcVSA3Q_7CiB05298Pej16QSRbHyCTFXifpaeXYaykhEOpN1PDvayuIAxKHzmUO87zvjOYF4BIjH3f1Y-3jgAkvlCH3sZTU3y0RYoz5hy9g8D46AQNEEfOYYIuv4My5NUKIYMYHoMjH0yIdwShNoY4Wnlqo-18a3kyzbDpXWQ7niR7DZDJTub5XE-3FWTRS8KGI0kT_htHwoUgyBYeZGiUaZpFOJnF-fQFOm3Lj7Le3fg6KW6WHYy-dxskwSr2Khhx79VLIJbU04CUKRWBpgxsWVBUrreSEIo4ICcu6YUyEtBRc1jUjTIa1rbhEy5qeg6uj70u7_bO3bmeeVq6ym035bLd7ZwSVRBApUUdefiDX23373B1nCOWIBiKQHfT9MwgTSbAQlOKO-nmkqnbrXGsb89Kunsr21WBk-lTM2vSvN_3rTZ-KeUvFHDrx9VH8d7Wxr_-hNHc3txGR_Xrv6LByO3t4dyjbR8M45aGZT2KT381mQovYpPQf4I2a-A</recordid><startdate>199301</startdate><enddate>199301</enddate><creator>HSUEH, L. PAUL</creator><creator>LIU, Y. ANGELA</creator><general>Blackwell Publishing Ltd</general><general>B. Blackwell</general><scope>BSCLL</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>JQCIK</scope><scope>K30</scope><scope>PAAUG</scope><scope>PAWHS</scope><scope>PAWZZ</scope><scope>PAXOH</scope><scope>PBHAV</scope><scope>PBQSW</scope><scope>PBYQZ</scope><scope>PCIWU</scope><scope>PCMID</scope><scope>PCZJX</scope><scope>PDGRG</scope><scope>PDWWI</scope><scope>PETMR</scope><scope>PFVGT</scope><scope>PGXDX</scope><scope>PIHIL</scope><scope>PISVA</scope><scope>PJCTQ</scope><scope>PJTMS</scope><scope>PLCHJ</scope><scope>PMHAD</scope><scope>PNQDJ</scope><scope>POUND</scope><scope>PPLAD</scope><scope>PQAPC</scope><scope>PQCAN</scope><scope>PQCMW</scope><scope>PQEME</scope><scope>PQHKH</scope><scope>PQMID</scope><scope>PQNCT</scope><scope>PQNET</scope><scope>PQSCT</scope><scope>PQSET</scope><scope>PSVJG</scope><scope>PVMQY</scope><scope>PZGFC</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>199301</creationdate><title>SHOULD ALL TAX-EXEMPT BORROWERS WITH INVESTMENT-GRADE QUALITY ACQUIRE CREDIT RATINGS?</title><author>HSUEH, L. PAUL ; LIU, Y. ANGELA</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c3571-db89b3e347a0584e3f1f64cc6ae9723070225adf66853a879dd62695dec790bd3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1993</creationdate><topic>Bond issues</topic><topic>Bond markets</topic><topic>Bond ratings</topic><topic>Bonds</topic><topic>Credit</topic><topic>Credit ratings</topic><topic>Statistical analysis</topic><topic>Stock exchange</topic><topic>Studies</topic><topic>Tax exempt organizations</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>HSUEH, L. PAUL</creatorcontrib><creatorcontrib>LIU, Y. ANGELA</creatorcontrib><collection>Istex</collection><collection>CrossRef</collection><collection>Periodicals Index Online Segment 33</collection><collection>Periodicals Index Online</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - West</collection><collection>Primary Sources Access (Plan D) - International</collection><collection>Primary Sources Access &amp; Build (Plan A) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Midwest</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Northeast</collection><collection>Primary Sources Access (Plan D) - Southeast</collection><collection>Primary Sources Access (Plan D) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Southeast</collection><collection>Primary Sources Access (Plan D) - South Central</collection><collection>Primary Sources Access &amp; Build (Plan A) - UK / I</collection><collection>Primary Sources Access (Plan D) - Canada</collection><collection>Primary Sources Access (Plan D) - EMEALA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - South Central</collection><collection>Primary Sources Access &amp; Build (Plan A) - International</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - International</collection><collection>Primary Sources Access (Plan D) - West</collection><collection>Periodicals Index Online Segments 1-50</collection><collection>Primary Sources Access (Plan D) - APAC</collection><collection>Primary Sources Access (Plan D) - Midwest</collection><collection>Primary Sources Access (Plan D) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Canada</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - EMEALA</collection><collection>Primary Sources Access &amp; Build (Plan A) - APAC</collection><collection>Primary Sources Access &amp; Build (Plan A) - Canada</collection><collection>Primary Sources Access &amp; Build (Plan A) - West</collection><collection>Primary Sources Access &amp; Build (Plan A) - EMEALA</collection><collection>Primary Sources Access (Plan D) - Northeast</collection><collection>Primary Sources Access &amp; Build (Plan A) - Midwest</collection><collection>Primary Sources Access &amp; Build (Plan A) - North Central</collection><collection>Primary Sources Access &amp; Build (Plan A) - Northeast</collection><collection>Primary Sources Access &amp; Build (Plan A) - South Central</collection><collection>Primary Sources Access &amp; Build (Plan A) - Southeast</collection><collection>Primary Sources Access (Plan D) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - APAC</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - MEA</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of business finance &amp; accounting</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>HSUEH, L. PAUL</au><au>LIU, Y. ANGELA</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>SHOULD ALL TAX-EXEMPT BORROWERS WITH INVESTMENT-GRADE QUALITY ACQUIRE CREDIT RATINGS?</atitle><jtitle>Journal of business finance &amp; accounting</jtitle><date>1993-01</date><risdate>1993</risdate><volume>20</volume><issue>2</issue><spage>291</spage><epage>306</epage><pages>291-306</pages><issn>0306-686X</issn><eissn>1468-5957</eissn><abstract>Credit ratings help reveal and certify borrowers' quality in a market with information asymmetry. Examination is offered of the quality revelation and certification values of a bond rating in the tax-exempt bond market in which a high percentage of new issues are not rated. It is shown that larger borrowers whose bond issues are targeted at national markets benefit more from acquiring a bond rating than smaller/local borrowers. The findings not only provide a plausible explanation why investment-grade quality borrowers may choose not to acquire a credit rating, but also are consistent with the observation that most nonrated tax-exempt bonds are relatively small in issue size.</abstract><cop>Oxford, UK</cop><pub>Blackwell Publishing Ltd</pub><doi>10.1111/j.1468-5957.1993.tb00666.x</doi><tpages>16</tpages></addata></record>
fulltext fulltext
identifier ISSN: 0306-686X
ispartof Journal of business finance & accounting, 1993-01, Vol.20 (2), p.291-306
issn 0306-686X
1468-5957
language eng
recordid cdi_proquest_miscellaneous_839282990
source EBSCO Business Source Complete; Wiley Blackwell Single Titles; Periodicals Index Online
subjects Bond issues
Bond markets
Bond ratings
Bonds
Credit
Credit ratings
Statistical analysis
Stock exchange
Studies
Tax exempt organizations
title SHOULD ALL TAX-EXEMPT BORROWERS WITH INVESTMENT-GRADE QUALITY ACQUIRE CREDIT RATINGS?
url https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-14T19%3A41%3A08IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=SHOULD%20ALL%20TAX-EXEMPT%20BORROWERS%20WITH%20INVESTMENT-GRADE%20QUALITY%20ACQUIRE%20CREDIT%20RATINGS?&rft.jtitle=Journal%20of%20business%20finance%20&%20accounting&rft.au=HSUEH,%20L.%20PAUL&rft.date=1993-01&rft.volume=20&rft.issue=2&rft.spage=291&rft.epage=306&rft.pages=291-306&rft.issn=0306-686X&rft.eissn=1468-5957&rft_id=info:doi/10.1111/j.1468-5957.1993.tb00666.x&rft_dat=%3Cproquest_cross%3E573272%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=1292188331&rft_id=info:pmid/&rfr_iscdi=true