Abstract
У статті визначені, охарактеризовані та систематизовані ключові ендогенні джерела розгортання конфліктів інтересів як на корпоративному, так і на операційному рівнях функціонування кредитно-рейтингових агентств (КРА). Урахування специфіки окреслених ендогенних джерел у їх взаємозв’язку сприятиме проектуванню комплексної системи інструментів превентивного та реактивного управління конфліктами інтересів з боку власників, керівників а також регуляторів діяльності КРА.
Highlights
The usefulness and importance of functions of credit rating agencies (CRAs), as well as their significant impact on the modern financial markets’ efficiency, the trust, and confidence of investors and borrowers, could hardly be overestimated
At the operational level the main sources of conflicts of interest are the violation of the principle of the independence of analysts and other employees of CRAs, as well as their personal interest in the manipulation with ratings
The positive effect of CRAs’ functioning as information intermediaries grows only if they focus on maximizing the information quality of rating assessments as the basis for their reputation capital increasing
Summary
The usefulness and importance of functions of credit rating agencies (CRAs), as well as their significant impact on the modern financial markets’ efficiency, the trust, and confidence of investors and borrowers, could hardly be overestimated. The lack of transparency of CRAs’ activities in the above-mentioned aspects does not allow financial markets participants to understand the nature and limitations of credit ratings and the risks of unduly relying on them to reach informed investment or other financial decisions, and decisions with respect to their cooperation with particular CRA This reduces for CRAs the disciplinary effect associated with potential reputational losses, which, in turn, aggravates the conflicts of interest problem.
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Financial and credit activity problems of theory and practice
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
