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Financial Risk in Polish Companies During the Global Economic Crisis of 2007–2008 with Particular Emphasis on Evaluation of the Use of Reserve Debt Capacity (Ryzyko finansowania polskich przedsiebiorstw w latach globalnego kryzysu ze szczegolnym uwzglednieniem oceny wykorzystania rezerwy pojemnosci zadluzeniowej )

Author

Listed:
  • Patrycja Chodnicka

    (Katedra Systemów Finansowych Gospodarki, Wydzial Zarzadzania, Uniwersytet Warszawski)

  • Katarzyna Niewinska

    (Katedra Systemów Finansowych Gospodarki, Wydzial Zarzadzania, Uniwersytet Warszawski)

Abstract

The aim of this publication was to analyze the impact of the countires’ credit ratings at the cost of capital. The article was carried out the analysis and review of the existing world literature on the above subject. Authors used a static panel data models for the 135 countries in the period of 2002–2012. As the independent variables were the long- and short-term credit ratings awarded by rating agencies: Standard & Poor’s and Moody’s Investor Service. Credit ratings was converted linearly to the numeric variables. The publication examines how credit ratings and history of credit events affect: the interest rate and maturity of new external debt obligations (public and private), interest rates on deposits and loans, the spreads of interest rates, real interest rates and credit risk premium.

Suggested Citation

  • Patrycja Chodnicka & Katarzyna Niewinska, 2015. "Financial Risk in Polish Companies During the Global Economic Crisis of 2007–2008 with Particular Emphasis on Evaluation of the Use of Reserve Debt Capacity (Ryzyko finansowania polskich przedsiebiors," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 13(55), pages 197-219.
    • Handle: RePEc:sgm:pzwzuw:v:13:i:55:y:2015:p:197-219
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    References listed on IDEAS

    as
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    2. Jorion, Philippe & Liu, Zhu & Shi, Charles, 2005. "Informational effects of regulation FD: evidence from rating agencies," Journal of Financial Economics, Elsevier, vol. 76(2), pages 309-330, May.
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    More about this item

    Keywords

    capital structure; debt ratios; financial crisis; debt capacity; financial flexibility;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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