Campus Units

Supply Chain and Information Systems

Document Type

Article

Publication Version

Published Version

Publication Date

2019

Journal or Book Title

Journal of Transportation Management

First Page

37

Last Page

52

Abstract

Commercial airports are publicly-owned transportation infrastructure, usually funded with bonds. The bond rating decision for these entities thus has important ramifications for bond investors, issuers, airport managers, and even the communities the airports serve, but the rating decision process is not well understood. This paper discusses a simulation of the rating process in two decision environments, including a downgrade. The effect of information framing in an environment of incomplete data is examined using amateur evaluators. Amateur evaluators were utilized to understand how people with limited financial analysis skills would respond when presented with incomplete information and a primed scenario. The results indicate that amateur evaluators were more likely to downgrade a bond grade than a rating agency, but this effect was moderated for amateur evaluators with more work experience. Implications for airport and supply chain infrastructure and discussed.

Comments

This article is published as Hawkins, R.R., LeMay, S.A., and P.M. Ralston (2019) “Your Community Gets a “B-“: Analysis of the Specific and Curious Realm of Airport Bond Ratings”, Journal of Transportation Management. 29 (2) 37-52. Posted with permission.

Copyright Owner

Journal of Transportation Management

Language

en

File Format

application/pdf

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