Unveiling the Impact of Foreign Competition on the Bond Market: Insights from S&P Debt Ratings

Lasantha, R., Tawiah, V., Atif, M., Puwanenthiren, P. and Nadarajah, S. 2024. Unveiling the Impact of Foreign Competition on the Bond Market: Insights from S&P Debt Ratings. Economics Letters. 241 111797. https://doi.org/10.1016/j.econlet.2024.111797

TitleUnveiling the Impact of Foreign Competition on the Bond Market: Insights from S&P Debt Ratings
TypeJournal article
AuthorsLasantha, R., Tawiah, V., Atif, M., Puwanenthiren, P. and Nadarajah, S.
Abstract

This study investigates the influence of foreign competition on U.S. firms' debt ratings. The findings reveal a significant three-step downgrade in ratings with increased foreign competition, in particular affecting firms with prospector strategies, low organizational capital, high information asymmetry, weak governance, and reshaping creditworthiness assessment.

KeywordsForeign competition
Debt ratings
Governance
Creditworthiness
Article number111797
JournalEconomics Letters
Journal citation241
ISSN0165-1765
Year2024
PublisherElsevier
Publisher's version
License
CC BY 4.0
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.1016/j.econlet.2024.111797
Publication dates
Published online11 Jun 2024
Published in printAug 2024

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