Business Research Project

Business Research Project
University of Phoenix

The article “Credit Rating Agencies in Capital Markets: A Review of Research Evidence on Selected Criticisms of the Agencies” is an analysis done by Carol Ann Frost that discusses research that has been done on credit rating agencies and their validity on a global level. Many times credit reporting agencies, or CRA’s, will determine and audit an individual’s creditworthiness and business practice. This article sets into motion the research and tools required to determine the authenticity of the individual credit reporting agency.
The focus of this article is to research how to research CRA accuracy and to evaluate “some of the principal criticisms of the CRAs; (2) point to some of the lessons learned from recent scandals (such as Enron and WorldCom); and (3) provide suggestions for future research that would shed more light on these questions” (Frost, 2007, p.470). In other words, the research is being done to determine where CRA’s are failing to accurately analyze and report correct information and determine if that misinformation has and will cause financial meltdowns at the corporate level. The importance of knowing this is to prevent financial meltdowns that affect the global market, economy and the individual.
The problem at hand is that often times CRA evaluations are not accurate. When these are not accurate corporations can grow from false information and records and eventually it will catch up with the company and the company will fail. The other problem that this article addresses is how to complete this research so that it is done in an effective and accurate manner. The information obtained through this research will be of great use to lawmakers and regulators who set the rules and benchmarks for fair lending and record keeping that will protect the consumer.
There are three types of research used in this article. They are data collection, documentation and analysis.   Data collection and... [continues]

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