The potential of conflicts of interest arising in the activities of credit rating agencies in Ukraine
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Received April 3, 2017;Accepted May 26, 2017;Published July 18, 2017
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Author(s)Mykhailo Rebryk , Yuliia Rebryk , Sergii Sokol ,Link to ORCID Index: https://orcid.org/0000-0003-2721-2997
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DOIhttp://dx.doi.org/10.21511/ppm.15(2-1).2017.06
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Article InfoVolume 15 2017, Issue #2 (cont. 1), pp. 222-233
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Cited by1 articlesJournal title: Cogent Business & ManagementArticle title: Elements of Credit Rating: A Hybrid Review and Future Research AgendaDOI: 10.1080/23311975.2021.1878977Volume: 8 / Issue: 1 / First page: / Year: 2021Contributors: Prashant Ubarhande, Arti Chandani, David McMillan
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This paper presents a comprehensive system of 38 indicators, which allows identification of possible endogenous sources and evaluation of the potential of conflicts of interest arising both at the corporate (in models of ownership, business and financial activities, corporate governance and organizational structures) and operational (analyst) levels of credit rating agencies (CRAs). Testing of proposed system of indicators was carried out based on the content analysis of the public information on the activities of five authorized credit rating agencies of Ukraine.
It is determined that at the beginning of 2017 the most sensitive to the risk of conflicts of interest were “Standard Rating” (74% of threat signals of the total number of indicators), “Expert Rating” (57%) and “Rurik” (37%). The highest potential of conflicts’ of interest escalation was identified in the models of financial activities (80% of threat signals of the total number of indicators of that group) and models of ownership of Ukrainian CRAs (63%).
The estimations of the risk level are proposed to be regarded mainly as signals of the potentially high sensitivity of the particular CRA to the risk of conflicts’ of interest escalation.
Such signals, in particular, can be used by the regulators for carrying out remote monitoring activities of CRAs, for adopting supervisory and regulatory decisions. In turn, managers and owners of rating agencies can conduct a more detailed analysis of the detected potential sources of conflict of interest with the aim of identification, localization, and elimination of shortcomings in the system of conflict of interest management.
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JEL Classification (Paper profile tab)G24, G32, G38, M14
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References26
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Tables5
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Figures1
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- Figure 1. The total number of detected signals about the threat of conflicts’ of interest escalation in the activities of Ukrainian CRAs (at the beginning of 2017)
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- Table 1. The warning signals concerning the potential of conflicts of interest in models of ownership of CRAs in Ukraine
- Table 2. The warning signals concerning the potential of conflicts of interest in models of business activities of CRAs in Ukraine
- Table 3. The warning signals concerning the potential of conflicts of interest in models of financial activities of CRAs in Ukraine
- Table 4. The warning signals concerning the potential of conflicts of interest in models of corporate governance and organizational structures of CRAs in Ukraine
- Table 5. The warning signals concerning the potential of conflicts of interest in models ensuring the independence of employees of CRAs in Ukraine
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Environmental responsibility mechanism development in the public sector of the economy
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Factors affecting accrual accounting reform and transparency of performance in the public sector in Vietnam
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At the same time, the accrual-based accounting reform will have a positive impact on improving the transparency and efficiency of public sector operations in Vietnam. Among the factors affecting accounting reform, the legal environment factor is the most influential determinant, followed by the contingent of accountants. The study’s limitation is that the new experimental investigation is only conducted with a small sample size and in a short period. However, the research results are also a useful reference for those who are interested in the context that Vietnam is preparing to have strong reforms in accounting in the public sector in the coming time. -
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