Some economists have argued that one important role of rating agencies is to keep the managers of

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Some economists have argued that one important role of rating agencies is to keep the managers of firms that issue bonds from using the funds raised in ways that would not be in the best interestsof the purchasers of the bonds.

Why might the managers of firms have different goals than the investors who buy the firms’

bonds? How does the existence of rating agencies reduce this conflict between investors and firm managers?

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Money Banking And The Financial System International Edition

ISBN: 978-1292000183

2nd Edition

Authors: R. Glenn Hubbard ,Anthony P Obrien

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Question Posted: Mar 15, 2024 12:00 AM

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Some economists have argued that one important role of rating agencies is to keep the managers of

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Money Banking And The Financial System International Edition

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