Credit rating agencies and asymmetricinformation. Are they an adequate solution? What is their impact on foreign direct investment's attraction?

Postgraduate Thesis uoadl:2885275 264 Read counter

Unit:
Κατεύθυνση Διαχείρισης Κεφαλαίων και Κινδύνων
Library of the Faculty of Economics and of the Faculty of Business Administration
Deposit date:
2019-11-13
Year:
2019
Author:
Farmaki Sofia-Nefeli
Supervisors info:
Χορταρέας Γεώργιος, Καθηγητής, Τμήμα Οικονομικών Επιστημών, Εθνικό και Καποδιστριακό Πανεπιστήμιο Αθηνών
Original Title:
Οίκοι αξιολόγησης πιστοληπτικής ικανότητας και ασύμμετρη πληροφόρηση. Αποτελούν τελικά μία επαρκή λύση; Ποιά η επίδρασή τους στην προσέλκυση άμεσων ξένων επενδύσεων;
Languages:
English
Greek
Translated title:
Credit rating agencies and asymmetricinformation. Are they an adequate solution? What is their impact on foreign direct investment's attraction?
Summary:
The financial crisis of 2008 revealed problems and weaknesses of the financial system, which led to the failure of markets. A key factor for this development is the failure of credit rating agencies to fulfil their primary mission, the elimination of asymmetric information and moral hazard and encourage the phenomenon of arbitrage and rating inflation. This study investigates the effect of credit ratings on attracting FDI inflows, for the 7 European South countries (Greece, Cyprus, Italy, Malta, Spain, Portugal, France) for the period from 2008 to 2018. The results prove that the investors pay high attention to credit ratings, in order to invest in a Third Country. At the same time, the importance of credit agencies for the markets is inflected (although their influence has diminished in the years following the financial crisis, due to their direct involvement).
Main subject category:
Social, Political and Economic sciences
Keywords:
Credit Rating Agencies, Asymmetric Information, Moral Hazard, Rating Inflection, Foreign Direct Investment, Net Inflows of Foreign Direct Investment, financial crisis
Index:
No
Number of index pages:
0
Contains images:
Yes
Number of references:
53
Number of pages:
53
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