About the Paper
About the Paper
About the Paper
The first page of Dr. Puneet Prakash's Paper as published in the Journal of Accounting and Finance in 2020.
Abstract
We examine the joint effect of average default risk and uncertainty on the behavior of rating agencies. We find when average default risk rises in the economy standards weaken but a simultaneous increase in uncertainty causes the standards to tighten more.
The net effect is the documented conservatism in ratings. A trade-off between short term gains in market share and long term costs to reputation provides a consistent explanation for these findings.
Originally Published on:
Journal of Accounting and FinanceVol. 20 No. 3 (2020)
Read the Article:Follow this link to read the article. https://articlegateway.com/index.php/JAF/article/view/3008
The first page of Dr. Puneet Prakash's Paper as published in the Journal of Accounting and Finance in 2020.
Abstract
We examine the joint effect of average default risk and uncertainty on the behavior of rating agencies. We find when average default risk rises in the economy standards weaken but a simultaneous increase in uncertainty causes the standards to tighten more.
The net effect is the documented conservatism in ratings. A trade-off between short term gains in market share and long term costs to reputation provides a consistent explanation for these findings.
The net effect is the documented conservatism in ratings. A trade-off between short term gains in market share and long term costs to reputation provides a consistent explanation for these findings.
Originally Published on:
Journal of Accounting and Finance
Vol. 20 No. 3 (2020)
Read the Article:
Follow this link to read the article. https://articlegateway.com/index.php/JAF/article/view/3008
Meet the Author
Meet the Author
Meet the Author
Dr. Puneet Prakash is professor in the finance and risk management department at Missouri State University. He also holds the Baker Chair of Risk Management and Insurance. He has MS and MBA (IB) degrees from India, where he worked with Indian Airlines Limited in its supply chain management department before moving to the U.S. for his PhD in Risk Management and Insurance (RMI) from Georgia State University, Atlanta.
An avid researcher, Prakash has several top-notch publications to his credit, including Academy of Management Journal, Journal of Risk and Insurance, Journal of International Money and Finance, and Journal of Risk Finance. Some of his technical research has appeared in engineering journals. Prakash is a member of the International Council for the Industry Association RIMS (Risk Management Society).
Dr. Puneet Prakash
Dr. Puneet Prakash