Research "ARE BANK LOAN RATINGS RELEVANT? "

ARE BANK LOAN RATINGS RELEVANT? Moreover, the coefficient on the background index across MSAs—1.58 in Column C, and slightly higher in later columns—is nearly identical to that found within MSAs (Table 1.4, Column A). This is consistent with the claim that both coefficients measure primarily the peer effect (γ ), which might be the same across MSAs as within, rather than effectiveness sorting (θ ), which we would expect to see within but not across MSAs.