Corporate integrity culture and credit rating assessment

IF 5.4 2区 经济学 Q1 BUSINESS, FINANCE Journal of International Financial Markets Institutions & Money Pub Date : 2024-05-04 DOI:10.1016/j.intfin.2024.102007
Xin Bao , Meini Han , Raymond Lau , Xiaowei Xu
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Abstract

Recent research has started to acknowledge the vital role of soft information in shaping credit rating outcomes. We extend this literature by investigating the effect of corporate integrity culture on the credit rating process and document a significant positive relationship between a culture of integrity and corporate credit ratings. We further show that this relationship is from both an indirect effect of integrity on a reduced financial risk, and a direct effect of integrity in signalling the creditworthiness of the underlying firm. When an alternative signalling device, such as firm reputation, earnings management activity, and Carbon Disclosure Project involvement, contradicts with integrity culture, integrity is no longer a significant predictor of credit ratings. Our results suggest that corporate culture plays an important role in the credit rating assessment process.

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企业诚信文化和信用评级评估
最近的研究开始承认软信息在影响信用评级结果方面的重要作用。我们通过研究企业诚信文化对信用评级过程的影响,对这一文献进行了扩展,并记录了诚信文化与企业信用评级之间的显著正相关关系。我们进一步证明,这种关系既来自诚信对降低财务风险的间接影响,也来自诚信对相关公司信用度的直接影响。当公司声誉、收益管理活动和碳披露项目参与等替代信号与诚信文化相抵触时,诚信不再是信用评级的重要预测因素。我们的研究结果表明,企业文化在信用评级评估过程中发挥着重要作用。
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来源期刊
CiteScore
6.60
自引率
10.00%
发文量
142
期刊介绍: International trade, financing and investments, and the related cash and credit transactions, have grown at an extremely rapid pace in recent years. The international monetary system has continued to evolve to accommodate the need for foreign-currency denominated transactions and in the process has provided opportunities for its ongoing observation and study. The purpose of the Journal of International Financial Markets, Institutions & Money is to publish rigorous, original articles dealing with the international aspects of financial markets, institutions and money. Theoretical/conceptual and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • International financial markets • International securities markets • Foreign exchange markets • Eurocurrency markets • International syndications • Term structures of Eurocurrency rates • Determination of exchange rates • Information, speculation and parity • Forward rates and swaps • International payment mechanisms • International commercial banking; • International investment banking • Central bank intervention • International monetary systems • Balance of payments.
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