From uncertainty toward risk: the case of credit ratings

Carruthers, Bruce G.

doi:10.1093/ser/mws027

Cited by 113 publications

(90 citation statements)

References 32 publications

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“…Some researchers note how regulation-by-information shapes the social understanding of transparency and accountability (Fung et al 2007;Espeland and Sauder 2016). Others emphasize its ability to transform uncertainty into risk (Carruthers 2013;Langohr and Langohr 2010). Most studies agree on their ability to transform whole fields of activity and result in tremendous organizational and institutional change (Espeland and Sauder 2006;Fung et al 2007;Hale and Held 2011;Hedmo et al 2006;Sabel et al 2000;Sabel 1994;Wedlin 2006).…”

Section: Examining the Effects Of Regulation-by-informationmentioning

confidence: 99%

“…Fung et al (2007) examined transparency policies and found that they could effectively organize the activities of targeted organizations when their reporting process was easy to use and sensitive to disclosers' capacities and inclinations. Studies of credit rating agencies noted that municipalities and corporations during times of crisis used credit ratings to market their bonds and distinguish them from others not safe to invest in (Carruthers 2013;Alcubilla and del Pozo 2012;Langohr and Langohr 2010). Some organizations and communities issuing financial products were pressured to disclose information about themselves, following standards that were not clear and they did not have a say in setting up (Carruthers 2013;NPO 2013).…”

Section: A On the Targeted Or Regulated By The Systemmentioning

confidence: 99%

“…On the consumers (clients or audiences) of the products and services of the targeted or regulated by the system Regulation-by-information affects also the various audiences of the targeted or regulated organizations-consumers of their products and services and other stakeholders and broader publics-by entering as a factor in their decision-making. Major examinations of credit rating agencies noted that, during times of crisis, credit ratings helped investors assess risk (Carruthers 2013;Alcubilla and del Pozo 2012;Langohr and Langohr 2010). Sauder and Lancaster (2006) found that even a small change in the rank given by the U.S. News & World Report affected the number of applications to American law schools.…”

Section: A On the Targeted Or Regulated By The Systemmentioning

confidence: 99%

“…They have studied disclosure or reporting (Fung et al 2007;Olegario 2003;Cohen 2012), rating (Cohen 2012;Carruthers 2013;Langhor and Langhor 2010;Alcubilla and del Pozo 2012), ranking (Espeland and Sauder 2016;Hedmo et al 2006;Sauder and Espeland 2006;Wedlin 2006), and certification or accreditation systems (Seidman 2007;Bartley 2007;Hedmo 2004). …”

Section: Recognizing and Explaining The Variety Of Regulation-by-infomentioning

confidence: 99%

“…However, it is the symbols that are the most accessible to most audiences, rather than the more detailed summary reports (Carruthers 2013). The accessibility and visibility of their information products to the broader public, either other producers or consumers of a service or product, has changed through time and context (NPO 2013).…”

Section: B Ratingmentioning

confidence: 99%

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The Private Roots and Public Branches of Regulation-by-Information: Understanding The Legal Incorporation of Rating in Finance and Accreditation in Healthcare (1900s-1970s)

Gjata

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This dissertation lies at the intersection of economic sociology, political sociology, and organizational sociology, and examines broadly, the emergence and transformation of regulationby-information-a form of regulating producers through information products without specifying enforcement mechanisms. Existing scholarship emphasizes the effects and effectiveness of regulation-by-information above all. It neglects the processes through which regulation-by-information emerged and changed through time, and consequently, it fails to conceptualize and explain this kind of regulation. This dissertation addresses these gaps by tracing the evolution of two systems of regulation-by-information and their operators: rating and securities rating agencies in finance, and accreditation and hospital accreditation organizations in healthcare, in the United States. Using theories on the state regulation of industries and theories of institutionalization, and data on congressional records and hearings about the legal recognition of certain private rating and accreditation organizations, organizational histories and accounts, examinations of industry publications, and newspaper articles, I examine the emergence of securities rating and hospital accreditation as mainly private enterprises and their transformation into increasingly public endeavors, culminating with the legal incorporation of their sources.This study traces the history of legal incorporation to reveal the political and cultural struggles surrounding the emergence and transformation of regulation-by-information. I argue and show that the organizational identity work of rating agencies and accreditation organizations-how they presented their product and themselves-contributed to their successful institutionalization, their regulatory power, and their selection for incorporation into government rules and regulations. 3 ACKNOWLEGEMENTSThere are several beings that helped me complete this dissertation in the form I present it to you, dear reader. They gave me enough strength and confidence to find, embrace, and materialize my voice as a researcher into writing.First of all, I am deeply thankful for my advisor Elizabeth H. Gorman. Thanks to her frank, practical, meticulous, and constructive feedback and her open-minded support during most of my time as a graduate student, I was able to complete this work. This dissertation would not be possible without her guidance and encouragement. She was the best advisor for me: one that would always know how to communicate with me, energize my work, and whom I trusted fully.I must also thank my committee members: Simone Polillo for providing an example with his work for the kind of research I wanted to do and where I wanted to be within the discipline of sociology-at the intersection of comparative, historical, economic and political sociology, andAdam Slez who would always engage constructively and enthusiastically with my work.

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Section: Examining the Effects Of Regulation-by-informationmentioning

confidence: 99%