The effect of accounting discretion on firms' credit ratings

Research Project

Project/Area Number	18K12895
Research Category	Grant-in-Aid for Early-Career Scientists
Allocation Type	Multi-year Fund
Review Section	Basic Section 07100:Accounting-related
Research Institution	Tohoku Gakuin University
Principal Investigator	KOGA Yuya 東北学院大学, 経営学部, 准教授 (40780383)
Project Period (FY)	2018-04-01 – 2022-03-31
Project Status	Completed (Fiscal Year 2021)
Budget Amount *help	¥3,120,000 (Direct Cost: ¥2,400,000、Indirect Cost: ¥720,000) Fiscal Year 2020: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000) Fiscal Year 2019: ¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000) Fiscal Year 2018: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Keywords	格付 / 利益マネジメント / 複数格付 / 経済的帰結 / 財務会計 / 利益調整
Outline of Final Research Achievements	The aim of this research project is to examine the role of multiple ratings. First, this study examines whether the classification of investment-grade and speculative-grade impacts on earnings management. The results revealed that firms that were assigned BBB- and BB+ ratings implemented real earnings management. I also found that rating agencies discount the real earnings management of companies with multiple ratings in their rating evaluations compared to those with a single rating. Second, focusing on the voluntary adoption of IFRS, I examine how multiple ratings affect rating relevance. The results revealed that companies with multiple ratings have improved their credit rating relevance of accounting figures after IFRS voluntary adoption.
Academic Significance and Societal Importance of the Research Achievements	本研究は複数格付の役割を明らかにしている点に学術的な意義がある。先行研究では格付機関間の競争が及ぼす格付に与える影響の結果は一貫していない。海外では2社以上の格付機関から格付を取得することが一般的であり、S&PとMoody'sのシェアが高い。本研究は単一格付の取得が一般的で、格付機関が5社存在する日本のセッティングを用いて、格付機関の競争の役割を明らかにしている点に学術的な意義を有している。