Arbeitspapier
Predicting rating changes for banks: How accurate are accounting and stock market indicators?
We aim to assess how accurately accounting and stock market indicators predict rating changes for Asian banks. We conduct a stepwise process to determine the optimal set of early indicators by tracing upgrades and downgrades from rating agencies, as well as other relevant factors. Our results indicate that both accounting and market indicators are useful leading indicators but are more effective in predicting upgrades than downgrades, especially for large banks. Moreover, early indicators are only significant in predicting rating changes for banks that are more focused on traditional banking activities such as deposit and loan activities. Finally, a higher reliance of banks on subordinated debt is associated with better accuracy of early indicators.
- ISBN
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978-952-462-800-6
- Language
-
Englisch
- Bibliographic citation
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Series: Bank of Finland Research Discussion Papers ; No. 15/2012
- Classification
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Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
- Subject
-
Bank Failure
Bank Risk
Ratings
Emerging Market
- Event
-
Geistige Schöpfung
- (who)
-
Distinguin, Isabelle
Hasan, Iftekhar
Tarazi, Amine
- Event
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Veröffentlichung
- (who)
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Bank of Finland
- (where)
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Helsinki
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Distinguin, Isabelle
- Hasan, Iftekhar
- Tarazi, Amine
- Bank of Finland
Time of origin
- 2012
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