EconPapers    
Economics at your fingertips  
 

Sovereign Credit Rating Changes and Its Impact on Financial Markets of Europe during Debt Crisis Period in Greece and Ireland

Fahad Bashir (), Omar Masood () and Abdullah Imran Sahi ()

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2017, vol. 7, issue 4, 146-159

Abstract: The purpose of this study is to examine the impact of sovereign credit rating changes on financial markets using database of two countries (Greece, Ireland) in the European union over the period March, 2008-Dec, 2015. By analyzing the influence of sovereign credit rating on bond market yield We also examine the correlation between sovereign credit rating and bond market yield of each country during crisis period. Quarterly basis data of all variables is used in the research. By using regression analysis with Durbin Watson test and Pearson correlation for each country financial markets the findings indicated that sovereign credit rating has a significant impact on bond markets. Sovereign ratings are negatively correlated with Bond yield in both countries. The finding summarized that credit rating has a major influence on financial markets during crisis period.

Keywords: Credit ratings; Moody; S&P; Fitch; bond yield; inflation; current account (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://hrmars.com/hrmars_papers/Article_15_Sovereign_Credit_Rating_Changes.pdf (application/pdf)
http://hrmars.com/hrmars_papers/Article_15_Sovereign_Credit_Rating_Changes.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hur:ijaraf:v:7:y:2017:i:4:p:146-159

Access Statistics for this article

More articles in International Journal of Academic Research in Accounting, Finance and Management Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().

 
Page updated 2022-05-07
Handle: RePEc:hur:ijaraf:v:7:y:2017:i:4:p:146-159