International rating agencies and corporate impact: a case study in Iberian companies

Detalhes bibliográficos
Autor(a) principal: Soares, Vasco Salazar
Data de Publicação: 2020
Outros Autores: Carvalho, Sónia de, Mendes-Ribeiro, Mafalda
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/11328/3189
Resumo: This study intended to analyse the impact of Rating Notation, from four of the major International Credit Rating Agencies, in Iberian private companies. Primary data was collected via SABI Database, with financial relevant data of Iberian private companies, in a time frame from 2003 to 2015. Results were determined by an empirical analysis, through a new econometric model, starting with correlations between leverage and variables Return on Assets, Return on Equity, Dimension, Tangibility, Sales Variation, Political Risk and Critical Political Risk. Critical Political Risk is a dummy variable on notations of the Credit Rating Agencies. Considering the impact of these international notations, we address the issue of how this notation impacts domestic Political Risk and affect companies’ capital structure. Support evidence was found for our hypothesis: as Political Risk increases, Leverage tends to decrease. Further studies interest lays in research how CPR affects each company, measuring that risk by company, and analysing in detail the impact of Rating Notation in the decision of financing in private companies from Iberian Market.
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spelling International rating agencies and corporate impact: a case study in Iberian companiesInternational credit rating agenciesFinancial crisisCorporate structureLeverageThis study intended to analyse the impact of Rating Notation, from four of the major International Credit Rating Agencies, in Iberian private companies. Primary data was collected via SABI Database, with financial relevant data of Iberian private companies, in a time frame from 2003 to 2015. Results were determined by an empirical analysis, through a new econometric model, starting with correlations between leverage and variables Return on Assets, Return on Equity, Dimension, Tangibility, Sales Variation, Political Risk and Critical Political Risk. Critical Political Risk is a dummy variable on notations of the Credit Rating Agencies. Considering the impact of these international notations, we address the issue of how this notation impacts domestic Political Risk and affect companies’ capital structure. Support evidence was found for our hypothesis: as Political Risk increases, Leverage tends to decrease. Further studies interest lays in research how CPR affects each company, measuring that risk by company, and analysing in detail the impact of Rating Notation in the decision of financing in private companies from Iberian Market.Scienceweb Publishing2020-09-10T10:34:15Z2020-02-01T00:00:00Z2020-02info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/11328/3189eng2384-732810.33495/jeibm_v8i1.19.125Soares, Vasco SalazarCarvalho, Sónia deMendes-Ribeiro, Mafaldainfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-06-15T02:11:38ZPortal AgregadorONG
dc.title.none.fl_str_mv International rating agencies and corporate impact: a case study in Iberian companies
title International rating agencies and corporate impact: a case study in Iberian companies
spellingShingle International rating agencies and corporate impact: a case study in Iberian companies
Soares, Vasco Salazar
International credit rating agencies
Financial crisis
Corporate structure
Leverage
title_short International rating agencies and corporate impact: a case study in Iberian companies
title_full International rating agencies and corporate impact: a case study in Iberian companies
title_fullStr International rating agencies and corporate impact: a case study in Iberian companies
title_full_unstemmed International rating agencies and corporate impact: a case study in Iberian companies
title_sort International rating agencies and corporate impact: a case study in Iberian companies
author Soares, Vasco Salazar
author_facet Soares, Vasco Salazar
Carvalho, Sónia de
Mendes-Ribeiro, Mafalda
author_role author
author2 Carvalho, Sónia de
Mendes-Ribeiro, Mafalda
author2_role author
author
dc.contributor.author.fl_str_mv Soares, Vasco Salazar
Carvalho, Sónia de
Mendes-Ribeiro, Mafalda
dc.subject.por.fl_str_mv International credit rating agencies
Financial crisis
Corporate structure
Leverage
topic International credit rating agencies
Financial crisis
Corporate structure
Leverage
description This study intended to analyse the impact of Rating Notation, from four of the major International Credit Rating Agencies, in Iberian private companies. Primary data was collected via SABI Database, with financial relevant data of Iberian private companies, in a time frame from 2003 to 2015. Results were determined by an empirical analysis, through a new econometric model, starting with correlations between leverage and variables Return on Assets, Return on Equity, Dimension, Tangibility, Sales Variation, Political Risk and Critical Political Risk. Critical Political Risk is a dummy variable on notations of the Credit Rating Agencies. Considering the impact of these international notations, we address the issue of how this notation impacts domestic Political Risk and affect companies’ capital structure. Support evidence was found for our hypothesis: as Political Risk increases, Leverage tends to decrease. Further studies interest lays in research how CPR affects each company, measuring that risk by company, and analysing in detail the impact of Rating Notation in the decision of financing in private companies from Iberian Market.
publishDate 2020
dc.date.none.fl_str_mv 2020-09-10T10:34:15Z
2020-02-01T00:00:00Z
2020-02
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/11328/3189
url http://hdl.handle.net/11328/3189
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 2384-7328
10.33495/jeibm_v8i1.19.125
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dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Scienceweb Publishing
publisher.none.fl_str_mv Scienceweb Publishing
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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