Oluyomi A. Osobajo
Determinants of sovereign credit ratings in emerging markets.
Osobajo, Oluyomi A.; Akintunde, Adeola E.
Adeola E. Akintunde
This study critically investigates the determinants of sovereign credit ratings in emerging markets, during 2001 to 2015. This was conducted in 20 emerging markets, using S&P and Moody ratings. Linear framework econometric approach with the use of pooled Ordinary Least Square regression method was adopted in the study. The explanatory power of the estimated models has a good performance across both rating agencies. The study reveals the importance of five macroeconomic variables in determining the sovereign credit rating of emerging markets. These variables are: gross domestic product per capital, inflation, government debt, reserves, and external debt. Also, world governance indicators, a proxy for qualitative/political variables, were found to be an essential determinant of rating.
|Journal Article Type||Article|
|Publication Date||May 31, 2019|
|Journal||International Business Research|
|Publisher||Canadian Center of Science and Education|
|Peer Reviewed||Peer Reviewed|
|Institution Citation||OSOBAJO, O.A. and AKINTUNDE, A.E. 2019. Determinants of sovereign credit ratings in emerging markets. International business research [online], 12(5), pages 142-166. Available from: https://doi.org/10.5539/ibr.v12n5p142|
|Keywords||Sovereign credit rating; Credit rating; Credit rating agency; Emerging market|
OSOBAJO 2019 Determinants of sovereign
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