THE INFLUENCE OF FUNDAMENTAL CHARACTERISTICS OF COMPANIES LISTED IN THE STOCK EXCHANGE OF THAILAND ON BONDSS’ INITIAL CREDIT RATING
Keywords:Initial Credit Rating, Bonds, Fundamental Characteristics
The purposes of this research were to study relationships of company quality, earning quality and Initial credit ratings of debt as well as to study influences of company quality over the credit rating of bonds through earning quality. The research method was quantitative research. The sample was selected by collecting 2012-2018 financial statements data of companies in the Stock Exchange of Thailand (SET) that were being evaluated their bond credit rating for the first time. The Structural Equation Model (SEM) was applied to analyze these data in this study.
Based on the findings, the proposed casual relationship model development of corporate quality in term of size, earning quality, financial risk and operating cash flow was appropriate and successful. Moreover, the study also indicates that company quality has an impact on the bond credit rating through the earning quality with a significant at 0.05.
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