Article Per Year (5 Year)
p-Index From 2020 - 2025
0.23
P-Index
This Author published in this journals
All Journal IMAGE
Ramadhani, Remuni El
Unknown Affiliation
Decision Sciences, Operations Research & Management

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

 1 
The Difference between Corporate Rating Migration Probability during Economic Contraction and Expansion in Indonesia Ramadhani, Remuni El; Rahim, Rida; Adrianto, Fajri
Image : Jurnal Riset Manajemen Vol 12, No 2 (2024): Image : Jurnal Riset Manajemen
Publisher : Universitas Pendidikan Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17509/image.2024.021

Abstract

Corporate Rating is one of the tools of Signaling Theory, expected to provide clear and standardized signals of a company’s financial health and credit risk. However, according to the experts, the regulation of Corporate Rating issuance by Credit Rating Agency (CRA) becomes a hindrance to the timeliness of company information updates, especially during sudden large-scale economic shifts. Based on this issue, this research aims to examine the differences between Corporate Rating migration probabilities under two different economic conditions: contraction and expansion. Before conducted hypothesis testing, the secondary data from 73 sample companies were processed using Markov-Switching Autoregressive (MSVAR) and Multinomial Logistic Regression methods. Ther results of this study shows that there is no difference in the probability of a Corporate Rating downgrade during both economic conditions. On the other side, the probability of a Corporate Rating upgrade is smaller during economic contraction, and there is a difference in the probability of a Corporate Rating remained unchange between both economic conditions.
Co-Authors Adrianto, Fajri Rida Rahim