Impact of wage rigidity on sovereign credit rating

被引：3
|
作者：
Yang, Daecheon [1 ]
Song, Jeongseok [2 ]
机构：
[1] Chung Ang Univ, Sch Business Adm, Seoul 06974, South Korea
[2] Chung Ang Univ, Sch Econ, Seoul 06974, South Korea
来源：
EMERGING MARKETS REVIEW | 2018年 / 34卷
关键词：
Wage rigidity; Sovereign credit rating; Regime switching; Cash flow volatility; COST STICKINESS; TIME-SERIES; RISK; UNEMPLOYMENT; COUNTRIES; POLICIES; REAL; OECD;
D O I：
10.1016/j.ememar.2017.10.002
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Sovereign credit rating is a condensed assessment of a country's ability to repay its public debt in a timely fashion. Downward wage rigidity has been considered as a critical determinant of various macroeconomic and financial phenomena. This study examines the effect of a country's wage rigidity on its sovereign credit rating after measuring downward wage rigidities based on a regime-switching model. The results indicate that greater wage rigidity induces lower sovereign credit rating. We find that wage rigidity amplifies cash flow fluctuations and magnified cash flow volatility negatively affects sovereign credit rating. (C) 2017 Elsevier B.V. All rights reserved.
引用
收藏
页码：25 / 41
页数：17
相关论文
共 50 条
  • [1] The Impact of Sovereign Credit Rating News on Credit Default Swap Spreads
    Gursoy, Ovunc
    Avci, Emin
    [J]. JOURNAL OF EAST-WEST BUSINESS, 2023, 29 (02) : 97 - 113
  • [2] A Research Review of the Sovereign Credit Rating and the Credit Rating Agencies
    Yu, Yin
    [J]. 2013 INTERNATIONAL CONFERENCE ON MANAGEMENT (ICM 2013), 2013, : 655 - 659
  • [3] Impact of Sovereign Credit Rating Disclosure on Chinese Financial Market
    Li, Chunling
    Pervaiz, Khansa
    Khan, Muhammad Asif
    Khan, Muhammad Atif
    Olah, Judit
    [J]. SAGE OPEN, 2022, 12 (01):
  • [4] Sovereign credit rating contagion in the EU
    Fourie, Leila
    Botha, Ilse
    [J]. INTERNATIONAL CONFERENCE ON APPLIED ECONOMICS (ICOAE) 2015, 2015, 24 : 218 - 227
  • [5] Sovereign Credit Rating: Impact on Social Investment and Role in Financial Subordination
    Vijaya, Ramya
    [J]. REVIEW OF RADICAL POLITICAL ECONOMICS, 2024,
  • [6] The Impact of Indonesia Sovereign Credit Rating Upgrades and Investment Grade Status on the Sovereign Spread Changes
    Novianti, Dwi Anggi
    Danarsari, Dwi Nastiti
    [J]. INDONESIAN CAPITAL MARKET REVIEW, 2013, 5 (01) : 23 - 32
  • [7] THE IMPACT OF SOVEREIGN CREDIT RATING CHANGES ON THE STOCK MARKETS IN CENTRAL AND EASTERN EUROPE
    Klimaviciene, Asta
    Pilinkus, Donatas
    [J]. TRANSFORMATIONS IN BUSINESS & ECONOMICS, 2011, 10 (03): : 87 - 103
  • [8] Visegrad Four Countries and their Sovereign Credit Rating
    Alexy, Martin
    Ochotnicky, Pavol
    Kacer, Marek
    [J]. EKONOMICKY CASOPIS, 2014, 62 (05): : 447 - 472
  • [9] Information asymmetry and the Brazilian sovereign rating in the assessment of Credit Rating Agencies
    do Nascimento, Romario Rocha
    Costa, Mauricio Martins
    [J]. CONTABILIDADE GESTAO E GOVERNANCA, 2022, 25 (03): : 398 - 415
  • [10] The informational content of sovereign credit rating: another look
    Fathi Nakai
    Tarek Chebbi
    [J]. Journal of Asset Management, 2023, 24 : 353 - 373
12345