Credit Rating Change and Capital Structure in Latin America
This study analyzes the impact of imminent reclassification of credit rating on the decision-making regarding capital structure of non-financial corporations listed in Latin America. Despite the importance attributed by the market agents and the existence of empirical evidence of the effect caused b...
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| Format: | Article |
| Language: | English |
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Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
2016-04-01
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| Series: | BAR: Brazilian Administration Review |
| Subjects: | |
| Online Access: | http://www.anpad.org.br/periodicos/arq_pdf/a_1714.pdf |
| _version_ | 1797972921796263936 |
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| author | Dany Rogers Wesley Mendes-da-Silva Pablo Rogers |
| author_facet | Dany Rogers Wesley Mendes-da-Silva Pablo Rogers |
| author_sort | Dany Rogers |
| collection | DOAJ |
| description | This study analyzes the impact of imminent reclassification of credit rating on the decision-making regarding capital structure of non-financial corporations listed in Latin America. Despite the importance attributed by the market agents and the existence of empirical evidence of the effect caused by rating in the capital structure of companies in developed countries, this issue is still incipient in Latin-American countries. For this purpose, all the
non-financial corporation owners of, at least one corporate rating issued by an international rating agency were taken into account, with the requirement of being listed on a stock exchange in at least one Latin-American country. Through a data panel analysis comprising the period between 2001 and 2010 and by making use of the Generalized Method of Moments (GMM), the main results that were achieved did not indicate that non-financial corporations
listed in Latin America, with imminent reclassification of ratings, adopt less debts than those without an imminent reclassification of their ratings. These findings suggest that the imminent reclassifications of credit ratings do not present important information for managers of non-financial corporations in Latin America when making decisions about capital structure. |
| first_indexed | 2024-04-11T03:56:05Z |
| format | Article |
| id | doaj.art-437555f06d464479824f7e8a40c93016 |
| institution | Directory Open Access Journal |
| issn | 1807-7692 |
| language | English |
| last_indexed | 2024-04-11T03:56:05Z |
| publishDate | 2016-04-01 |
| publisher | Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD) |
| record_format | Article |
| series | BAR: Brazilian Administration Review |
| spelling | doaj.art-437555f06d464479824f7e8a40c930162023-01-02T00:30:35ZengAssociação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)BAR: Brazilian Administration Review1807-76922016-04-01132e15016410.1590/1807-7692bar2016150164Credit Rating Change and Capital Structure in Latin AmericaDany Rogers0Wesley Mendes-da-Silva1Pablo Rogers2Universidade Federal de Uberlândia, Uberlândia, MG, Brazil.Fundação Getulio Vargas,São Paulo, SP, Brazil.Universidade Federal de Uberlândia, Uberlândia, MG, Brazil.This study analyzes the impact of imminent reclassification of credit rating on the decision-making regarding capital structure of non-financial corporations listed in Latin America. Despite the importance attributed by the market agents and the existence of empirical evidence of the effect caused by rating in the capital structure of companies in developed countries, this issue is still incipient in Latin-American countries. For this purpose, all the non-financial corporation owners of, at least one corporate rating issued by an international rating agency were taken into account, with the requirement of being listed on a stock exchange in at least one Latin-American country. Through a data panel analysis comprising the period between 2001 and 2010 and by making use of the Generalized Method of Moments (GMM), the main results that were achieved did not indicate that non-financial corporations listed in Latin America, with imminent reclassification of ratings, adopt less debts than those without an imminent reclassification of their ratings. These findings suggest that the imminent reclassifications of credit ratings do not present important information for managers of non-financial corporations in Latin America when making decisions about capital structure.http://www.anpad.org.br/periodicos/arq_pdf/a_1714.pdfcredit rating; capital structure; credit scoring; panel data. |
| spellingShingle | Dany Rogers Wesley Mendes-da-Silva Pablo Rogers Credit Rating Change and Capital Structure in Latin America BAR: Brazilian Administration Review credit rating; capital structure; credit scoring; panel data. |
| title | Credit Rating Change and Capital Structure in Latin America |
| title_full | Credit Rating Change and Capital Structure in Latin America |
| title_fullStr | Credit Rating Change and Capital Structure in Latin America |
| title_full_unstemmed | Credit Rating Change and Capital Structure in Latin America |
| title_short | Credit Rating Change and Capital Structure in Latin America |
| title_sort | credit rating change and capital structure in latin america |
| topic | credit rating; capital structure; credit scoring; panel data. |
| url | http://www.anpad.org.br/periodicos/arq_pdf/a_1714.pdf |
| work_keys_str_mv | AT danyrogers creditratingchangeandcapitalstructureinlatinamerica AT wesleymendesdasilva creditratingchangeandcapitalstructureinlatinamerica AT pablorogers creditratingchangeandcapitalstructureinlatinamerica |