Country risk at investing in capital markets – the case of Italy
Given the current turbulences on the European capital markets, as well as the expectations of a new recession, it is possible to expect that the risk of individual countries and their capital markets will increase significantly. This is particularly the case of those countries, which have long-term...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2019-06-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12150/PPM_2019_02_Chovancova.pdf |
| _version_ | 1818505095595163648 |
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| author | Božena Chovancová Peter Árendáš Patrik Slobodník Iveta Vozňáková |
| author_facet | Božena Chovancová Peter Árendáš Patrik Slobodník Iveta Vozňáková |
| author_sort | Božena Chovancová |
| collection | DOAJ |
| description | Given the current turbulences on the European capital markets, as well as the expectations of a new recession, it is possible to expect that the risk of individual countries and their capital markets will increase significantly. This is particularly the case of those countries, which have long-term problems with economic instability and imbalances. The basis for country risk quantification is the country credit rating and credit risk of the government bonds. The market-based methods react often differently, as their reactions to the actual market developments are more flexible. The purpose of this paper is to compare various methods of country risk measurement. The study is focused on the country risk of Italy, a country that experienced a turbulent economic development over the last two decades. The results show that the CPFER method and sovereign ratings show a similar level of country risk, while the market-based methods show a higher level of country risk. |
| first_indexed | 2024-12-10T21:46:04Z |
| format | Article |
| id | doaj.art-e039d52a242d4938ac6fba8bb09cf70f |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-12-10T21:46:04Z |
| publishDate | 2019-06-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-e039d52a242d4938ac6fba8bb09cf70f2022-12-22T01:32:22ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672019-06-0117244044810.21511/ppm.17(2).2019.3412150Country risk at investing in capital markets – the case of ItalyBožena Chovancová0Peter Árendáš1Patrik Slobodník2Iveta Vozňáková3Ph.D., Professor, Department of Banking and International Finance, University of Economics in BratislavaPh.D., Associate Professor, Department of Banking and International Finance, University of Economics in BratislavaDoctoral Student, Department of Banking and International Finance, University of Economics in BratislavaPh.D., Associate Professor, Institute of Entrepreneurship and Marketing, University of Entrepreneurship and Law PragueGiven the current turbulences on the European capital markets, as well as the expectations of a new recession, it is possible to expect that the risk of individual countries and their capital markets will increase significantly. This is particularly the case of those countries, which have long-term problems with economic instability and imbalances. The basis for country risk quantification is the country credit rating and credit risk of the government bonds. The market-based methods react often differently, as their reactions to the actual market developments are more flexible. The purpose of this paper is to compare various methods of country risk measurement. The study is focused on the country risk of Italy, a country that experienced a turbulent economic development over the last two decades. The results show that the CPFER method and sovereign ratings show a similar level of country risk, while the market-based methods show a higher level of country risk.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12150/PPM_2019_02_Chovancova.pdfbond marketequity risk premiumrisk spreadsovereign ratingstock market |
| spellingShingle | Božena Chovancová Peter Árendáš Patrik Slobodník Iveta Vozňáková Country risk at investing in capital markets – the case of Italy Problems and Perspectives in Management bond market equity risk premium risk spread sovereign rating stock market |
| title | Country risk at investing in capital markets – the case of Italy |
| title_full | Country risk at investing in capital markets – the case of Italy |
| title_fullStr | Country risk at investing in capital markets – the case of Italy |
| title_full_unstemmed | Country risk at investing in capital markets – the case of Italy |
| title_short | Country risk at investing in capital markets – the case of Italy |
| title_sort | country risk at investing in capital markets the case of italy |
| topic | bond market equity risk premium risk spread sovereign rating stock market |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12150/PPM_2019_02_Chovancova.pdf |
| work_keys_str_mv | AT bozenachovancova countryriskatinvestingincapitalmarketsthecaseofitaly AT peterarendas countryriskatinvestingincapitalmarketsthecaseofitaly AT patrikslobodnik countryriskatinvestingincapitalmarketsthecaseofitaly AT ivetavoznakova countryriskatinvestingincapitalmarketsthecaseofitaly |