19 purpose of this rule is to incentivize banks to make good loans by ensuring that they have some ‘skin-in-the-game’ (see, e.g., Daley et al., 2019). 1.5 Research sub-questions To address the overarching research question, ‘To what extent do factors beyond credit ratings affect securities credit quality, and to what extent do investors rely upon these ratings?’, I have established five sub-questions. The first question fcorceudsitersaotinngtsh:e reliance of investors on credit ratings and the factors beyond 1. Hc roewd i td roa ti innvgess ti on r ds erteelrymoi nn i nc rge tdhi te rf au tni nd gi ns g acnods to, tahnedr hf aocwt o dr so bUeSy oa nn dd EU market differences impact these relationships? The second and third sub-questions relate to the implications of the ‘issuer pays’ business model and competition between CRAs: 2. Tr aot iwn gh asth eoxptpeinntg i sa nt dh er actoi mn gp lceaxtietryi nogf ba esheacvuiroirt ys ,’ sa nd de s hi gonwr edloaet es dt ht oe GFC impact these relationships? 3. Hquoawlitdyoaensdcormatipnegtisttioanndbaertdwse?en large and small CRAs impact rating Tthheeirfocruerdthit qrauteinstgiso:n touches upon the consistency between CRAs in providing 4. Tr aot i nwghsa tg i veexnt e nt ht e ddoi f fCeRr eAnst pl ervoevlisd eo f ccornesdi isttoern tp raontde c trieolni a ba lcer ocsrse dUiSt states? Chapter 1 - General Introduction
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