134 Tb oe c as uu ms emi tairsi lzaer, g tehl ye dmo ma rikneatt efdo rb yc roendl yi t t hr ar et ien pg sl a yhearss wh ahdo hh ai gvhe ab wa rerlile- ress t at ob l iesnhter dy reputation and an international client base. As an entry strategy, a new, significantly smaller CRA might loosen its rating standards and provide more fCaRv Ao rs aabrlee froaut inndg st ot hbaenl ei tsss cloi kme pl ye, tci ot omr pt oa rgeadi nt omsamr kael ltesrhCaRr eA. sO, nt ot hc oe mo nper ohma ni sde, ltahregi er rating standards because building reputational capital is costly and recovering from a damaged reputation is a lengthy and difficult process. On the other hand, iatnmd i ag dh jtuws te ltlhbeei rt hr aatti nt hges lcaor mg epr rCoRmAi ss i rnega ct ht euipr osnt atnhde aerndtsr. aTnhc ee opfotshsei bsl me at wl l eera kCiRnAg op fr ornaot iunngcse di nwohredne rC Rt oA sg aairne do er arl ient ga iwn i mt hapr ok ewte sr hf ualries sius efrosuwn dh ot oa r eb ea belveetno bmroi nr ge potential future revenue. 4.2.1 Hypotheses Ou su troa fsosrems suml aetne tsoe fv tehr ea ll iht ye pr aottuhrees oe sn rceogma rpdei tni tgi ot hnei nr atthi ne gcsr ef odri tRrMa tBi nSgpmr oadr uk ec tt sl .eTa hd es sbteatrt teirn rgapt ionignst tios ct ha at et rt ht oe tchoemdpe emt iatni odnbiyn i tshs ue eCrRs .AWme asrt ka er tt bmyacyo cmapu as rei ni tgt ot hpe rcorveiddiet rLaotoi nk gi ns go fa lta trhgee ae nf fde cstms aolfl tChReAiss sf oure rt h- peasyasmree vt reannuceh me iondae gl , i voenne RmMi gBhSt ter xa pn es ac tc ttiho ant. CRAs with lower market share, such as DBRS and KBRA (small CRA hereafter), nr aetei nd gtso) ct oh ma np eCtReAms owr he oa ghgarvees sai vheilgyh ( mf o ra rekxeat ms hp al er,ebaynpdr os tvriodni ngg gml o obrael of auvtor reaabc lhe, such as Moody’s, S&P, and Fitch (large CRA hereafter) (see, for example, Flynn and Ghent, 2018; Bae et al., 2019). We hypothesize that small CRAs are more lt ihkaetl yh taos pdroomv iidnea nb te tmt earr ckreet dpi to rwaet irn. gWs ei f etxhpel oa idt dtiht ieosne avl ar ra itai nt igo ni ss aasns idg nt eesdt bwyhae Ct hReAr more competition (market share) of a large CRA in a specific market incentivizes
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