Credit rating initiation and accounting quality for emerging-market firms

• 成果类型: Article
• 署名作者: Bae, Kee-Hong; Purda, Lynnette; Welker, Michael; Zhong, Ligang
• 署名单位: York University - Canada; Queens University - Canada; Southwestern University of Finance & Economics - China
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/jibs.2013.4
• 发表日期: 2013
• 页码: 216-234
• 关键词: emerging markets; Credit ratings; Liability of foreignness; INTERNATIONALIZATION

摘要

We examine whether certification by an internationally recognized information intermediary helps emerging-market firms overcome the liability of foreignness in capital markets. Specifically, we ask whether securing a credit rating from Standard & Poor's (S&P) enables these firms to certify their financial reporting quality. We hypothesize that the unique information demands of lenders motivate firms to provide more conservative financial statements upon securing an S&P rating. We find evidence consistent with this conjecture. Moreover, the rating appears to be part of an international expansion strategy for these firms, and is followed by increased international activity in capital and product markets. Journal of International Business Studies (2013) 44, 216-234. doi:10.1057/jibs.2013.4