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Examining the credit rating of companies with a focus on governance and corporate factors
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Seyede Zahra mirnorolahi1   , Soghra Brari nokashti2 , Keihan Azadi3 |
1- Department of Accounting, Rasht, Islamic Azad University, Rasht, Iran.
2- Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran. , sbarari@iau.ac.ir
3- Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran. |
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Abstract: (13 Views) |
In this study, the relationship between governance and corporate factors with credit rating is measured. The statistical population in this study is the companies listed on the Tehran Stock Exchange from the beginning of 1391 to the end of 1401 for 11 years, of which 90 companies have been selected according to the systematic elimination method. Therefore, the number of observations based on year-company is 990. The hypotheses were tested using a multivariate regression method based on mixed data. Corporate governance was divided into two categories: internal and external. Internal corporate governance was measured using a scoring method (47 points) based on four important mechanisms, namely the board of directors, board meeting review, audit committee, and ownership structure. The industry competitiveness index was used to measure external corporate governance. Corporate factors were also divided into two parts: internal and external, with internal corporate factors considered as control variables and external factors related to stock market indices such as stock liquidity, stock returns, stock volatility, and company value. The research findings show that internal and external governance factors have a positive and significant effect on credit rating. Corporate factors (stock liquidity, stock returns, stock volatility, and company value) also have a positive and significant effect on credit rating. Establishing a domestic credit rating center based on local criteria and a combination of financial and qualitative data could help to clarify the country's economic environment.
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Article number: 21 |
| Keywords: Credit rating, internal driving factors, external driving factors, corporate factors |
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Full-Text [PDF 1400 kb]
(5 Downloads)
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Article type: Research |
Subject:
General
Received: 2023/03/31 | Accepted: 2023/06/16 | Published: 2023/07/1
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