IDEAS home Printed from https://ideas.repec.org/a/alk/jbms00/v3y2021i2id2025.html

Factors Affecting Corporate Bond Ratings in Indonesia

Author

Listed:
  • Ruspriono

    (Master of Management, Mercu Buana University, Indonesia)

  • Bambang Santoso Marsoem

    (Master of Management, Mercu Buana University, Indonesia)

Abstract

Bonds provide a rating signal for the issuer and investors of the ability to pay off a bond. This study aims to explain the factors that affect the ranking in terms of accounting and non-accounting aspects. This study uses all corporate bonds actively traded on the Indonesia Stock Exchange (IDX) and are denominated in rupiah as of December 31, 2019, sourced from Bloomberg, which consists of 996 companies. The method in the sample is the purposive sampling method. This sample consists of 35 companies with 111 bonds, testing the hypothesis using ordinal logistic regression analysis with SPSS Version 25.0 data processing tools. The results showed that liquidity had a positive effect on bond ratings, activity does not affect bond ratings, leverage, profitability, maturity, and auditor reputation have a negative effect on bond ratings.

Suggested Citation

  • Ruspriono & Bambang Santoso Marsoem, 2021. "Factors Affecting Corporate Bond Ratings in Indonesia," Journal of Business and Management Studies, Al-Kindi Center for Research and Development, vol. 3(2), pages 98-107, June.
    • Handle: RePEc:alk:jbms00:v:3:y:2021:i:2:id:2025
    DOI: 10.32996/jbms.2021.3.2.10
    as

    Download full text from publisher

    File URL: https://al-kindipublisher.com/index.php/jbms/article/view/2025
    File Function: Abstract page
    Download Restriction: no
    File URL: https://al-kindipublisher.com/index.php/jbms/article/download/2025/1691
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.32996/jbms.2021.3.2.10?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:alk:jbms00:v:3:y:2021:i:2:id:2025. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Al-Kindi Center for Research and Development (email available below). General contact details of provider: https://al-kindipublisher.com/index.php/jbms .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.