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Title: International rating agencies and corporate impact: a case study in Iberian companies
Authors: Soares, Vasco Salazar
Carvalho, Sónia de
Mendes-Ribeiro, Mafalda
Keywords: International credit rating agencies
Financial crisis
Corporate structure
Issue Date: Feb-2020
Publisher: Scienceweb Publishing
Citation: Soares, S., Carvalho, S., & Mendes-Ribeiro, M. (2020). International rating agencies and corporate impact: a case study in Iberian companies. Journal of Economics and International Business Management, 8(1), 15-20. doi: 10.33495/jeibm_v8i1.19.125. Disponível no Repositório UPT,
Abstract: 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.
ISSN: 2384-7328
Appears in Collections:REMIT – Artigos em Revistas Internacionais / Papers in International Journals

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