The experience in the period during and after the Asian crisis of 1997-98 has provoked an extensive debate about the credit rating agencies evaluation of sovereign risk in emerging markets lending. This study analyzes the role of credit rating agencies in international financial markets,...

"Emerging markets are an increasingly important area of corporate strategy and fast becoming the driver of global growth. Today, emerging markets account for 40% of global GDP and are experiencing growth rates two or three times faster than developed economies. Not surprisingly, investment...

The experience in the period during and after the Asian crisis of 1997-98 has provoked an extensive debate about the credit rating agencies' evaluation of sovereign risk in emerging markets lending. This study analyzes the role of credit rating agencies in international financial markets,...

In the present paper, we build a bivariate semiparametric dynamic panel model to reproduce the joint dynamics of sovereign ratings and government bond yields. While the individual equations resemble Pesaran-type cointegration models, we allow for different long-run relationships in both...

This paper explores the impacts of sovereign rating changes on domestic firm investments. Utilising a large sample of 1,589 rated firms in 40 countries during the period of 1995 to 2021, we document significant impacts of sovereign rating events on firm investments, proxied by total, short- and...