Insiders' stock pledging disclosures and credit ratings: Evidence from India

被引：3

作者：

Singh, Amanjot ^{[1
]}

Singh, Harminder ^{[2
]}

机构：

[1] Western Univ, Kings Univ Coll, London, ON N6A2M3, Canada

[2] Deakin Univ, Deakin Business Sch, Burwood, Vic 3125, Australia

来源：

PACIFIC-BASIN FINANCE JOURNAL | 2022年 / 75卷

关键词：

Credit ratings; Insiders; Stock pledging; India; CORPORATE GOVERNANCE; TRADE CREDIT; DEBT; INFORMATION; FIRMS; DETERMINANTS; AGENCIES; MANAGEMENT; OWNERSHIP; CHOICE;

D O I：

10.1016/j.pacfin.2022.101829

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine the impact of insiders' stock pledging disclosures on credit ratings of different debt instruments in India. The rating agencies extend a negative response in the form of low credit ratings for pledging firms compared to non-pledging firms -irrespective of any particular debt choice (private versus public) and debt maturity (short-term versus long-term). Insider stock pledging increases the likelihood of credit rating downgrade and the rating-watch status. It contains information about pledging firms' debt-servicing capacity and adversely affects credit ratings for firms with higher information asymmetry. Our findings also support an increase in the cost of debt for pledging firms.

引用

页数：17

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