The Visegrád Group Countries’ Ratings – Do the Credit Rating Agencies Make the Decisions Independently or Piggyback Themselves?

Niedziółka, Paweł

doi:10.2139/ssrn.3413369

Cited by 1 publication

(2 citation statements)

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“…Furthermore, it eventually reduces the risk and encourages investments (Finnerty, Miller, & Chen, 2013). For cost management, CRAs reduce the cost of debt (Kang & Ausloos, 2017), cost of regulations (Niedziolka, 2019), and the interest rate for organizations performing better (Mirović, Pavlović, & Puškarić, 2014). This process helps creditors assign interest rates (Sood, Mays, & Lindfield, 2012) and decide to increase or decrease interest rates for borrowers depending on the rating results (Jollineau, Tanlu, & Winn, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

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Entrepreneurs' opinion towards credit rating in Saudi Arabia

Siddiqui¹,

Bajwa²,

Al-Hudithi³

et al. 2021

JESI

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This study aims to measure the entrepreneur's opinions towards their credit rating in Saudi Arabia. Credit rating plays a pivotal role in the financial market, especially its more significant impact on new startups from the micro and macro levels. On the other hand, the credit rating industry, in general, is in its infancy stage in the Saudi financial market. Therefore, a minor objective of this study is to present the problems and prospects of entrepreneurs towards their credit rating. The study has adopted the questionnaire from earlier research on credit rating. A sample of 210 respondents participated in this survey comprising entrepreneurs, business incubation managers, bankers, university professors, engineers, doctors, and other professionals. Descriptive statistics and Exploratory Factor Analyses were used to analyze the data. Findings show there are five essential factors affecting credit rating in Saudi Arabia, i.e., (1) Credibility, (2) Clarity, (3) Competence, (4) Communications, and (5) Customer Services. The research provides valuable insights into the credit rating business and recommends that CRAs in Saudi Arabia and elsewhere improve upon these five factors to strengthen their business.

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Section: Literature Reviewmentioning

confidence: 99%

“…(Driss, Massoud, & Roberts, 2019) The Visegrád group countries' ratings: Do the CRAs make the decisions independently or piggyback themselves? Decreases the cost of regulations (Niedziolka, 2019) The effect of reputation shocks to rating agencies on corporate disclosures…”

Section: Literature Reviewmentioning

confidence: 99%