Credit Ratings and Firm Life-cycle

Magnus Blomkvist; Anders Löflund; Hitesh Vyas

doi:10.1016/j.frl.2020.101598

Credit Ratings and Firm Life-cycle

Magnus Blomkvist
, Anders Löflund^*
, Hitesh Vyas

^*Huvudförfattare för detta arbete

Finansiell ekonomi, Helsingfors

Audencia Business School

Forskningsoutput: Tidskriftsbidrag › Artikel › Vetenskaplig › Peer review

17 Citeringar (Scopus)

Sammanfattning

Credit ratings display an inverse U-shaped relation over the corporate life-cycle. Firms’ likelihood to obtain a rating initially increases over the life-cycle as reputation increases and asymmetric information is reduced. As investment opportunities diminish during the shakeout and decline phases the benefit of having a rating decreases. The economic effect is substantial: transitioning from the introduction to the growth phase increases the rating likelihood from 6.7% to 30%.

Originalspråk	Engelska
Artikelnummer	101598
Referentgranskad vetenskaplig tidskrift	Economics Letters
Nummer	5
Antal sidor	5
ISSN	0165-1765
DOI	https://doi.org/10.1016/j.frl.2020.101598
Status	Publicerad - 24.05.2020
MoE-publikationstyp	A1 Originalartikel i en vetenskaplig tidskrift

FN:s SDG:er

Detta resultat bidrar till följande hållbara utvecklingsmål:

SDG 9 – Hållbar industri, innovationer och infrastruktur

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512 Företagsekonomi

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10.1016/j.frl.2020.101598Licens: CC BY

1-s2.0-S1544612319312747-mainKorrektur, 524 KBLicens: CC BY

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Credit Ratings and Firm Life-cycle

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