Purpose – The aim of the paper is to study the degree of independence of customers' portfolio concentration measure from the pricing policy adopted by rating agencies. Design/methodology/approach – The paper tests different measures of customers value (revenues or profits and customer lifetime value) and different concentration measure (top customer or Herfindahl-Hirschman index) on the customers' portfolio of rating agencies in the time period 1999-2008. Simulating different pricing models, the paper tests the sensitivity of these measures to discounted fees applied to best customers and identifies measures that are more and less sensitive to the discount applied. Findings – Concentration measures that consider all the customers' portfolios and look at both cost and revenues related to the service on a multi-period time horizon (CLV) are less sensitive to the discount policy respect to the others. Research limitations/implications – Results point out some opportunities related to apply more complete approaches defined by marketing science on the financial service industry in order to construct better measures for the economic independence. The paper works only with publicly available data and more details about the fee applied to each customer could increase the significance of the results achieved. Practical implications – The paper contributes to the current debate on the economic independence of rating agencies stressing the opportunity of rethinking the measures on economic independence that are currently considered by supervisory authorities. Social implications – The paper is the first empirical application of standard marketing concepts of customers' concentration measure to the rating industry. Originality/value – The paper studies the pricing policies adopted by ratings agencies.

(2011). Measuring customers portfolio concentration for rating agencies: evidence from Fitch, Moodys and S&P [journal article - articolo]. In INTERNATIONAL JOURNAL OF BANK MARKETING. Retrieved from http://hdl.handle.net/10446/26061

Measuring customers portfolio concentration for rating agencies: evidence from Fitch, Moodys and S&P

GIBILARO, Lucia;
2011-01-01

Abstract

Purpose – The aim of the paper is to study the degree of independence of customers' portfolio concentration measure from the pricing policy adopted by rating agencies. Design/methodology/approach – The paper tests different measures of customers value (revenues or profits and customer lifetime value) and different concentration measure (top customer or Herfindahl-Hirschman index) on the customers' portfolio of rating agencies in the time period 1999-2008. Simulating different pricing models, the paper tests the sensitivity of these measures to discounted fees applied to best customers and identifies measures that are more and less sensitive to the discount applied. Findings – Concentration measures that consider all the customers' portfolios and look at both cost and revenues related to the service on a multi-period time horizon (CLV) are less sensitive to the discount policy respect to the others. Research limitations/implications – Results point out some opportunities related to apply more complete approaches defined by marketing science on the financial service industry in order to construct better measures for the economic independence. The paper works only with publicly available data and more details about the fee applied to each customer could increase the significance of the results achieved. Practical implications – The paper contributes to the current debate on the economic independence of rating agencies stressing the opportunity of rethinking the measures on economic independence that are currently considered by supervisory authorities. Social implications – The paper is the first empirical application of standard marketing concepts of customers' concentration measure to the rating industry. Originality/value – The paper studies the pricing policies adopted by ratings agencies.
journal article - articolo
2011
Gibilaro, Lucia; Mattarocci, Gianluca
(2011). Measuring customers portfolio concentration for rating agencies: evidence from Fitch, Moodys and S&P [journal article - articolo]. In INTERNATIONAL JOURNAL OF BANK MARKETING. Retrieved from http://hdl.handle.net/10446/26061
File allegato/i alla scheda:
File Dimensione del file Formato  
IJBM - Gibilaro Mattarocci.pdf

Solo gestori di archivio

Versione: publisher's version - versione editoriale
Licenza: Licenza default Aisberg
Dimensione del file 188.23 kB
Formato Adobe PDF
188.23 kB Adobe PDF   Visualizza/Apri
Pubblicazioni consigliate

Aisberg ©2008 Servizi bibliotecari, Università degli studi di Bergamo | Terms of use/Condizioni di utilizzo

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/26061
Citazioni
  • Scopus 1
  • ???jsp.display-item.citation.isi??? ND
social impact