Credit ratings and capital structure: New evidence from overconfident CFOs

2021 ◽  
Author(s):  
Shee Yee Khoo ◽  
Huong Vu ◽  
Patrycja Klusak
Keyword(s):  
Capital Structure ◽  
Credit Ratings ◽  
New Evidence

scholarly journals EFFECT OF CREDIT RATING ON CAPITAL STRUCTURE: A STUDY ON NON-FINANCIAL FIRMS IN PAKISTAN

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Stock Exchange ◽  
Credit Ratings ◽  
Least Square ◽  
Statistical Tool ◽  
Ordinary Least Square ◽  
Optimal Capital Structure ◽  
Financial Firms ◽  
The Impact

Purpose- Aim of this study was to investigate whether the credit rating is an important determinant other than the firm's characteristic to obtain optimal capital structure focusing on the research hypothesis that the firms with higher credit along with the other factors (FTOA, ROA and Size) tend to have more debt in their capital structure of firms rated by P?CR? and Karachi Stock Exchange (KSE). Methodology/Sample- For this research, sample size of 48 observations (3 years data of 16 firms) was taken on the basis of convenience sampling. Results obtained by using Ordinary Least Square Model (OLS) as statistical tool to test the hypothesis Findings- Analysis clearly suggested that credit ratings do have an impact on firm's capital structure. It was concluded that firms with higher credit ratings along with other factors (FTOA, ROA and Size) do not tend to have more debt in their capital structure. Implications- Outcomes of this research might help investors, debtors and other stakeholders of the firms (rated by PACRA) to understand the impact of credit rating on firm's debt ratio and the overall dynamics and mechanism of capital structure.

Corporate governance and the dynamics of capital structure: New evidence

2014 ◽  
Vol 48 ◽  
pp. 374-385 ◽  
Author(s):  
Ya-Kai Chang ◽  
Robin K. Chou ◽  
Tai-Hsin Huang
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
New Evidence

Do changes in credit ratings of REITs affect their capital structure decisions?

2014 ◽  
Vol 31 (3) ◽  
pp. 264-285 ◽  
Author(s):  
Qing Li ◽  
Yuen Leng Chow ◽  
Seow Eng Ong
Keyword(s):  
Capital Structure ◽  
Credit Ratings
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