Ratings move companies as well as consumers

A recent paper–“How Firms Respond to Being Rated”–by Duke faculty Aaron Chatterji and Harvard’s Michael Toffel provides insights into how ratings affect corporate performance. Ratings by companies like Moodyโ€™s, Michelin, and Consumer Reports have long swayed the behavior of consumers and investors. Ratings also influence the performance of the companies they describe. Corporate environmental ratings […]