DEA Governance Efficiency Frontier and Credit Rating
The purpose of our study is to test whether corporate governance efficiency may influence the credit rating of the firm. Using Data envelopment analysis (DEA), we construct a score of corporate governance efficiency. We are based on a sample of 571 American firms rated by Standard and Poor’s over the period 1995-2007. Our results show that high corporate governance efficiency improves credit rating. Hence, we find that corporate governance efficiency is a criterion in the credit rating process.
This paper aims to highlight some channels of crisis transmission as identified by economic literature and try to estimate which are the variables that count most using an econometric equation. In order to analyze this, we use tables, graphical interpretation and regression equation based on Thorston Beck IMF Database. The development of the financial sector is difficult to measure, but we take into discussion quantitative development of the financial sector, using indicators such as: exports and imports as annual percentage change; the lending rate; domestic credit as a share of GDP in percentage change (end-year) as a measure for the size of the financial sector, data used from EBRD Database. We found that transmission channels on GDP were (in order of importance) exports and deposit rates.