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

Hanken School of Economics
Trinity College Dublin

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

12 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

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 17 Partnerships for the Goals

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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title = "Credit ratings and information asymmetry on the Chinese syndicated loan market",

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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AU - Korkeamäki, Timo

AU - Pöyry, Salla

AU - Suo, Maiju

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N2 - 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.

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.

KW - China

KW - Credit ratings

KW - G15

KW - G24

KW - Information asymmetry

KW - Syndicated loans

UR - https://www.scopus.com/pages/publications/84906514153

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DO - 10.1016/j.chieco.2014.08.001

M3 - Article

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JO - China Economic Review

JF - China Economic Review

ER -

Credit ratings and information asymmetry on the Chinese syndicated loan market

Abstract

UN SDGs

Keywords

Access to Document

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