BIROn - Birkbeck Institutional Research Online

    Innovation and credit ratings, does it matter? UK evidence

    Al-Najjar, Basil and Elgammal, M. (2013) Innovation and credit ratings, does it matter? UK evidence. Applied Economics Letters 20 (5), pp. 428-431. ISSN 1350-4851.

    Full text not available from this repository.

    Abstract

    This study investigates the under-researched topic of credit rating predictions in the United Kingdom, using a sample of credit rated firms from FTSE 350 nonfinancial firms for the period 1999 to 2008. We aim to provide further insights regarding the credit ratings–capital structure hypothesis and to test whether innovation impacts credit ratings. We employed logit model and ordered probit analysis. Our results show that credit ratings are improved by innovation, profitability, growth, size, and reduction of leverage and business risk. However, firms with more innovation activities than internal optimum level have lower ratings. These results provide evidence that credit ratings can be viewed within the context of capital structure theory.

    Metadata

    Item Type: Article
    Keyword(s) / Subject(s): credit ratings, panel data, innovation, leverage
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Depositing User: Basil Al-Najjar
    Date Deposited: 26 Oct 2012 12:14
    Last Modified: 14 Jun 2013 10:06
    URI: http://eprints.bbk.ac.uk/id/eprint/5375

    Statistics

    Downloads
    Activity Overview
    0Downloads
    134Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item