This paper focuses on corporate rating delivery process in terms of localization criteria differentiation. Corporate rating is conceived as a default predictor. We conduct a comprehensive study of the existing literature on the corporate default models, outlining the weak and the strong points,...

The project concentrates on the relationship between corporate rating and country rating. The approach is empirical. A series of hypothesis regarding the content and the direction of the relationship between the two variables are tested using various statistical methods. The focus is directed to...

This paper focuses on highlighting out the way financial leverage has been approached, both from classic and modern perspective. Literature on financial leverage is reviewed in order to get a deeper insight on the way theories, concepts and mentalities have evolved. From the classic neutral...

This paper studies corporate exposure to country risk from the perspective of the cost of equity. Indeed, corporations located into emerging countries are perceived as being riskier; therefore, investors require higher returns which increase the financing costs. Under these circumstances,...

This paper focuses on the two-side practical approach of credit-scoring models: corporate default prediction and corporate economical performance hierarchization. Taking as database the most 9 representative listed companies on the Bucharest Stock Exchange within the equipment field, the...

This paper focuses on applying Black and Scholes structural approach on credit risk in the case of the companies listed on Romanian Stock Exchange. We conduct a case-study on 35 companies belonging to five industries (energetic, materials, chemistry, pharmaceuticals, equipments) during a period...

This paper explores the link between idiosyncratic and fundamental dimensions of the corporate finance within CEE countries. We elaborate a Vector Error Correction Model integrating both idiosyncratic and macro related indicators. We expect idiosyncratic variables to be closely related to the...

This paper focuses on CEE countries volatility captured by exchange rate dynamic. The spillover phenomenon is analyzed from the perspective of the actual financial crisis where cross-border capital flows strenghthened the premises of the financial contagion. Volatility will be approached...

We analyze the effects of Standard and Poor's sovereign rating changes on stock market return at the level of the Central and Eastern Europe area. We remark a certain differentiation in terms of stock market indices reaction to sovereign rating dynamic. We assume that sovereign rating upgrade is...

This paper focuses on developed versus emerging markets arbitrage in terms of investors’ perception. We first perform a literature review on the topic, highlighting out both disconnection and transmission belt theories. Then we conduct a deep comparative analysis on the East-European corporate...