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How dimensions of national culture and institutional characteristics influence sovereign rating migration dynamics

Listed author(s):
  • Huong Dang

    ()

    (University of Canterbury, Department of Economics and Finance & ZenTra)

This study examines the effects of national culture and institutional characteristics on the rating migration dynamics of countries rated by Standard & Poor’s (S&P) during the period January 1985 - October 2011. The study finds that national culture and institutional charac-teristics have significant effects, particularly on the probability of a downgrade. The effects of culture are robust to various controls and samples. There is also evidence that S&P’s past rating behaviours and Moody’s recent rating impact on S&P’s subsequent rating re-grades; however, the effect of Moody’s rating and Watchlist is not as strong as the impact of other control variables.

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Paper provided by ZenTra - Center for Transnational Studies in its series ZenTra Working Papers in Transnational Studies with number 42 / 2014.

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Length: 50 pages
Date of creation: Nov 2014
Handle: RePEc:zen:wpaper:42
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