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.
Copyright Owner
Journal of Transportation Management
Copyright Date
2019
Language
en
File Format
application/pdf
Recommended Citation
Hawkins, Richard R.; LeMay, Stephen A.; and Ralston, Peter M., "Your community gets a B- : analysis of the specific and curious realm of airport bond ratings" (2019). Supply Chain Management Publications. 51.
https://lib.dr.iastate.edu/scm_pubs/51
Included in
Finance and Financial Management Commons, Operations and Supply Chain Management Commons, Organizational Behavior and Theory Commons, Performance Management Commons, Technology and Innovation Commons
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.