Open AccessCredit Rating Agencies and Their Effects: An Analysis on Balkan Countries
Author(s) -
Nuh Ekrem Yıldırım,
Salim Üre,
Çağatay Karaköy
Publication year - 2021
Publication title -
journal of process management. new technologies
Language(s) - English
Resource type - Journals
eISSN - 2334-7449
pISSN - 2334-735X
DOI - 10.5937/jpmnt9-34130
Subject(s) - credit rating , inflation (cosmology) , unemployment , balance (ability) , economics , bond credit rating , gross fixed capital formation , panel data , balance sheet , business , financial system , monetary economics , finance , credit reference , credit risk , macroeconomics , gross domestic product , econometrics , medicine , physics , theoretical physics , physical medicine and rehabilitation
The financial structure in the world has become more complex with the increase in global capital movements. For this reason, credit rating agencies have emerged as an important component of the financial structure. Standard and Poors, Moody's and Fitch are the three most important companies in this market. The grades given by these institutions highly affect the economic situation of the countries. In this study, information is given about credit rating agencies and it is aimed to measure the effect of the points given to countries by Standard and Poors, Moody's and Fitch, which are the most important of these institutions, on the economy. For this purpose, the effect of credit scores on the economic growth of Balkan countries except Kosovo was analyzed using panel data analysis method. In addition, unemployment, inflation, current account balance and budget balance data were included in the analysis. The findings obtained show that credit scores have an effect on the economic growth of countries.