Piyush Agarwal
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A study on economic factors affecting credit ratings of Indian companies
Rajesh Mamilla , Mehul Mehta , Abhijay Shukla , Piyush Agarwal doi: http://dx.doi.org/10.21511/imfi.16(2).2019.27Investment Management and Financial Innovations Volume 16, 2019 Issue #2 pp. 326-335
Views: 1024 Downloads: 317 TO CITE АНОТАЦІЯThe objective of the research carried out is to understand the impact of selected economic variables (such as Crude Oil Price, GDP, Industrial Production, Exchange Rates, and Inflation) on credit rating of Indian companies.
The sample comprises of 120 rating observations during the period 2012–2016 for a total of 24 companies of India.
Measurement of central tendency – descriptive statistics is used where credit rating is used as dependent variable and five economic factors viz. Crude Oil Price, GDP, Industrial Production, Exchange Rates, and Inflation as the independent variables.
Results from the analysis indicate that the credit rating responds in both linear, as well as nonlinear manner, to selected economic factors. Economic factors such as GDP, Industrial Production, and Exchange Rates have a linear relationship to credit rating, whereas Crude Oil price and Inflation have a non-linear impact upon the credit rating.