Financial openness, domestic financial development and credit ratings

Eugenia Andreasen () and Patricio Valenzuela

Finance Research Letters, 2016, vol. 16, issue C, 11-18

Abstract: This article shows that financial openness significantly affects corporate and sovereign credit ratings and that the magnitude of this effect depends on the level of development of the domestic financial market. Issuers located in less financially developed economiesi stand to benefit the most from opening up their capital accounts, whereas the impact of this effect decreases as the level of development of the domestic capital market improves.

Keywords: Credit risk; Financial development; Financial liberalization (search for similar items in EconPapers)
JEL-codes: F34 F36 G15 G38 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Financial Openness, Domestic Financial Development and Credit Ratings (2015)
Working Paper: Financial Openness, Domestic Financial Development and Credit Ratings (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:16:y:2016:i:c:p:11-18

DOI: 10.1016/j.frl.2015.10.019

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