Information Economics of Asian Bond Markets: A Comparative Analysis of Credit Agencies.

This paper examines financial data and credit ratings of corporate bond issuers in East Asia. The empirical results suggest that the U.S.-based credit agency principally monitors issuers' creditworthiness as a determinant of corporate bond ratings. In contrast, local agencies focus on profitability and firm size. We consider that the similarities and differences in determinants originate from the following: (1) the business experience of agencies; and (2) the degree of development of each individual market. doi:10.1300/J098v08n03_06 [ABSTRACT FROM PUBLISHER]