Credit ratings and information asymmetry on the Chinese syndicated loan market

Timo Korkeamäki; Salla Pöyry; Maiju Suo

doi:10.1016/j.chieco.2014.08.001

Credit ratings and information asymmetry on the Chinese syndicated loan market

Timo Korkeamäki^*, Salla Pöyry, Maiju Suo

^*Corresponding author for this work

Not published at Aalto University

Research output: Contribution to journal › Article › Scientific › peer-review

9 Citations (Scopus)

Abstract

We study whether local credit ratings alleviate information asymmetry inherent in the fast growing Chinese market by examining the syndicate structure of loans issued by Chinese borrowers in 2003-2011. Despite the common criticism regarding the quality of Chinese credit ratings, our results suggest that they serve an important role in reducing information asymmetry in the market between corporate insiders and outside borrowers.

Original language	English
Pages (from-to)	1-16
Number of pages	16
Journal	China Economic Review
Volume	31
DOIs	https://doi.org/10.1016/j.chieco.2014.08.001
Publication status	Published - 1 Jan 2014
MoE publication type	Not Eligible

Keywords

China
Credit ratings
G15
G24
Information asymmetry
Syndicated loans

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10.1016/j.chieco.2014.08.001

Cite this

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abstract = "We study whether local credit ratings alleviate information asymmetry inherent in the fast growing Chinese market by examining the syndicate structure of loans issued by Chinese borrowers in 2003-2011. Despite the common criticism regarding the quality of Chinese credit ratings, our results suggest that they serve an important role in reducing information asymmetry in the market between corporate insiders and outside borrowers.",

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AB - We study whether local credit ratings alleviate information asymmetry inherent in the fast growing Chinese market by examining the syndicate structure of loans issued by Chinese borrowers in 2003-2011. Despite the common criticism regarding the quality of Chinese credit ratings, our results suggest that they serve an important role in reducing information asymmetry in the market between corporate insiders and outside borrowers.

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KW - Information asymmetry

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Credit ratings and information asymmetry on the Chinese syndicated loan market

Abstract

Keywords

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