Sovereign Ratings and National Culture

Huong Dang () and Graham Partington
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Huong Dang: University of Canterbury, https://www.canterbury.ac.nz

Working Papers in Economics from University of Canterbury, Department of Economics and Finance

Abstract: Whether sovereign governments default in part depends upon their willingness to pay and this in turn may depend on national culture. National culture may also affect capacity to pay and the assessment by rating analysts of sovereign risk. We therefore argue that culture affects ratings and empirically test the effects of culture on levels and changes in sovereign ratings. Levels and changes in sovereign ratings have traditionally been modelled in terms of macro-economic variables, rating outlook and rating history. The addition of culture variables to such models significantly improves the models’ fit to the data.

Keywords: Sovereign debt; sovereign rating; national culture; rating history; rating outlook (search for similar items in EconPapers)
JEL-codes: G24 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2016-10-24
New Economics Papers: this item is included in nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:cbt:econwp:16/31

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