174 4.5.3 Competition and issuers’ power Ts ehvee ri as sl uCeRr A- psa ay ns dr eovnelny usee lme cot dtehl e abl leotwt esr ios snuees r. sTot oi nrcerqeuaes set t chree dc hi ta rnagtei nogfs bf er oi nmg sTehl iesc ti endc ebnyt ii vs es ume rasy, CbReAc so mmei g hg rt epartoevr i dwehme no rteh ae t tcrraecdt ii vt er ar at itni ng g iss t hr ea qn ut ehsetier dp ebeyr sa. powerful, large issuer, who is potentially able to provide more future revenue for the CRA. So, competition among CRAs is found to be influenced by the power os mf ias lsl uCeRr As s( ep. gr o. , vsi edee Hb ee t teet rarl a. , t 2i n0g1s2i)n. Igne nt he ri sa ls ae nc tdi of on r, wt hee tseasmt ewthreatnhcehre o, tnh aa vn etrhaegi er li an rtgwe ro cwo amy ps :e wt i thoertsh (eEr qt uh ae tyi oanr e4l. a5r) g. eI s os ur esrmsai zl lei si ss uoeurrs imn deeaps ue nr edde nbty vvaarliuaeb loef, tuhseeidr market share (Issuer Size by Balance), and whether or not they are frequent issuers measured by the number of tranches they placed in the market (Issuer Size by Frequency). Our dependent variable is a dummy variable that equals one iiff tthhee ccrreeddiitt rraattiinngg aissseiqgunaeldobrybaesttmeralbl yCRlaArgs eisCbReAttse. r than the large CRA, and zero The results are presented in Table 4.8. In Panel A we use all tranches that roeucresi vaemdpal erba et itnwgeoe fn DDBBRRSS oarn dK BKRBAR Aa nt od tae sl ta rwghe er tpheeer rt, hains de fifne cPt ai sn et hl eB swa me es pf ol irt both CRAs. In columns (1) and (3) of Panel A, we show that the odds ratio of issuer size is positive and significant for both Issuer Size by Frequency with an odd ratio of 1.35 (z-stat = 11.56) and Issuer size by Balance with odds of 0.85 (azb- settat te r= r8a. 1t i 8n )g. Tb yh itshseu sgmg easl tl es rt hCaRt Al a. rWg ee ios bs us ee rr vs ei nsci mr eial as er rt he se uol dt sd isf owf ee xi np celrui ed ne coi nu gr es ux pg gl aens at st ot rhya tv al arri ag be l (eosri nmtohree rpeog wr eesrsfiuoln) ims soudeerlsi nt ecnodl ut mo inn (f l2u)eannc de (c4r e) .dTi thri sa tfiinngdsi nogf small CRAs; the smaller CRA is more likely to provide better ratings, probably to increase its selection opportunity.
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