Credit ratings and corporate cash holdings: Evidence from Korea’s corporate reform after the 1997 Asian financial crisis

Joe, Denis Yongmin; Oh, Frederick Dongchuhl

doi:10.1016/j.japwor.2017.11.003

Cited by 12 publications

(6 citation statements)

References 42 publications

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“…The rated firms are also significantly influenced. Studies show that credit ratings have an impact on the spreads of syndicated loans (Drago and Gallo, 2018), cash holdings management (Joe and Oh, 2018), premiums paid in mergers and acquisitions (Jory et al, 2016), capital structure adjustments (Huang and Shen, 2015), and the cost of bond issuance (Mählmann, 2009). Therefore, understanding the factors that determine the assignment of specific ratings is of paramount importance.…”

Section: Introductionmentioning

confidence: 99%

The effects of board of directors’ education on firms’ credit ratings

Papadimitri

Pasiouras

Tasiou

et al. 2020

Journal of Business Research

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Section: Introductionmentioning

confidence: 99%

The effects of board of directors’ education on firms’ credit ratings

Papadimitri

Pasiouras

Tasiou

et al. 2020

Journal of Business Research

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“…The increase of non-performing loans is a common precursor to financial crises in various countries (Rachman et al, 2018). As examples we note, the Nordic Banking Crisis that occurred in the early 1990s (Schweiger, 2014), the Mexican crisis in 1994 (Sosa and Ortiz, 2015), the Asian financial crisis in 1997 (Joe and Oh, 2018), the subprime mortgage credit crisis in the USA that occurred in 2008, and the European debt crisis that occurred in 2008 were all major banking crises that occurred in the past 30 years (Flavin and Sheenan, 2015). Based on the estimation results of the VECM, Viphindrartin et al (2021) concluded that credit, inflation and interest rates variables have a positive and significant effect on long-term nonperforming loans.…”

Section: Effect Of Credit Riskmentioning

confidence: 91%

Stability and insolvency sensitivity to Tunisian bank specific and macroeconomic effects

Neifar

Gharbi

2022

JIABR

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Purpose The purpose of this study to investigate the sensitivity of stability and insolvency of the Tunisian financial banking with respect to banks’ specific factors as well as to the macroeconomic conditions (including gross domestic product growth, inflation rate, foreign direct investment [FDI], EXRate, INT and unemp) during 2005–2014 period covering 2011 Tunisian revolution. Design/methodology/approach The variables of interest the financial institution stability which is measured by Z-score and solvency indicators that are determined by the capital adequacy ratio (CAP) and deposits to assets (DTA). This study seeks to assess the linkages among them (causality, magnitude and duration) that may shed some light on the micro-financial vulnerabilities that are associated with the macroeconomic environment and the monetary authority policy. To do so, this study considers two models: a panel vector autoregressif-X model for the tri-variate vector (Z-score, DTA, CAP) estimated by a system generalized method of moments after a forward mean-differencing and a dynamic seemingly unrelated regression model for the bi-variate vector (Z-score, DTA) estimated by 3LS. Findings Results say that there is a uni-directional contemporaneous negative relationship from stability to insolvency. Stability evolution can be attributed to both macroeconomic conditions and banks’ specific factors, whereas insolvency is attributed only to banks’ specific factors. Stability was found to increase when growth rate and FDI rise, whereas instability increases when interest rate rises, exchange rate depreciates and if inflation is high. Stability increases also when CAP increases. However, compared to conventional banks (CBs), Islamic banks (IBs) are found to be more solvent than CBs, and more stable post 2011 Tunisian revolution. Practical implications As fluctuation in inflation and exchange rate could lead to high interest rates and hence decreases the stability of the financial sectors, Tunisian monetary authority is advised to practice low interest rate policy. Originality/value This paper attends not only to compare the response of stability and insolvency to the effect of exogenous variables (macroeconomic and financial factors) in Tunisian banks but also to detect short run and long run feedback effects between dependent variables as well as to investigate whether IBs and CBs present evident heterogeneity of stability and insolvency evolution in relation to 2011 Tunisian revolution.

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“…Pengertian kredit adalah pemberian uang atau tagihan yang setara, berdasarkan perjanjian pinjaman atau kesepakatan antara pemberi kredit dan peminjam, yang mewajibkan peminjam untuk melunasi utangnya setelah jangka waktu tertentu dengan bunga (Green, 2016 ).…”

Section: Page | 14unclassified

Dampak Makro Ekonomi Terhadap Stabilitas Keuangan di Indonesia

Viphindrartin¹

2021

jmj

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Kondisi makroekonomi yang tidak pasti dapat mempenga-ruhi tingkat risiko kredit bermasalah pada bank. Pengaruh kondisi makro ekonomi terhadap NPL memiliki respon yang berbeda-beda untuk setiap sektor ekonomi. Tujuan utama penelitian ini adalah untuk mengetahui pengaruh faktor makroekonomi (inflasi, nilai tukar dan suku bunga) dan faktor spesifik bank (kredit) terhadap Non Performing Loan (NPL) BPR di Indonesia periode 2015 hingga 2018. Penelitian ini menggunakan estimasi Vector Error Correction Model (VECM) untuk mengetahui pengaruh variabel independen yang terdiri dari faktor makroekonomi dan faktor spesifik bank. Ber-dasarkan hasil estimasi VECM, tiga variabel yang berpengaruh posi-tif dan signifikan terhadap NPL jangka panjang yaitu kredit, inflasi dan suku bunga. Sedangkan dalam jangka pendek hanya ada dua variabel yang berpengaruh positif dan signifikan terhadap NPL yaitu kredit dan suku bunga. Variabel inflasi dan nilai tukar berpengaruh negatif dan tidak signifikan terhadap NPL dalam jangka pendek.Kata kunci: Bank Perkreditan Rakyat, Indikator Makroekonomi, NPL, Stabilitas Sistem Keuangan, VECM

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Credit ratings and corporate cash holdings: Evidence from Korea’s corporate reform after the 1997 Asian financial crisis

Cited by 12 publications

References 42 publications

The effects of board of directors’ education on firms’ credit ratings

The effects of board of directors’ education on firms’ credit ratings

Stability and insolvency sensitivity to Tunisian bank specific and macroeconomic effects

Dampak Makro Ekonomi Terhadap Stabilitas Keuangan di Indonesia

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