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Compensation Reform Analysis on Inflated Credit Rating Attenuation
โดย Kittiphod Charoontham, ผศ.ดร.ธัญรัตน์ อมรเพชรกุล อาจารย์ประจำคณะบริหารธุรกิจ
This study investigates the impact of compensation schemes on the decisions of a credit rating agencies (CRA) regarding how much effort to exert when learning about the type of a portfolio and how to disclose the learned information in the form of credit rating. Two compensation schemes are considered: (i) the rating contingent fee scheme, under which the fee is paid only when a favorable rating is provided, and (ii) the outcome contingent fee scheme, under which the fee is paid only when the rating accurately predicts the true type of the portfolio.