The Real Effects of Credit Ratings: The Sovereign Ceiling Channel

Autor:	Igor Cunha, Heitor Almeida, Miguel A. Ferreira, Felipe Restrepo
Rok vydání:	2017
Předmět:	Economics and Econometrics 050208 finance Capital structure 05 social sciences Financial market Monetary economics Downgrade Investment (macroeconomics) Credit rating Sovereignty Cost of capital Accounting Capital (economics) 0502 economics and business Business 050207 economics Finance
Zdroj:	The Journal of Finance. 72:249-290
ISSN:	1540-6261 0022-1082
DOI:	10.1111/jofi.12434
Popis:	We show that sovereign debt impairments can have a significant effect on financial markets and real economies through a credit ratings channel. Specifically, we find that firms reduce their investment and reliance on credit markets due to a rising cost of debt capital following a sovereign rating downgrade. We identify these effects by exploiting exogenous variation in corporate ratings due to rating agencies' sovereign ceiling policies, which require that firms' ratings remain at or below the sovereign rating of their country of domicile.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::b5463d982da1b1fc1a9bfac0efeba276 https://doi.org/10.1111/jofi.12434 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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