首页 | 本学科首页   官方微博 | 高级检索  
     检索      


Impact of wage rigidity on sovereign credit rating
Institution:1. School of Business Administration, Chung-Ang University, Seoul, 06974, South Korea;2. School of Economics, Chung-Ang University, Seoul, 06974, South Korea;1. Centre for Financial Econometrics, Deakin Business School, Deakin University, Australia;2. School of Business, Monash University, Malaysia;1. College of Business, Bryant University, United States;2. Feliciano School of Business, Montclair State University, United States;1. Gebze Technical University, Department of Economics, P.K.:141, 41400 Gebze, Kocaeli, Turkey;2. Sabanci University, Faculty of Arts and Social Sciences, Orhanli/Tuzla, 34956 Istanbul, Turkey;1. University of Strasbourg, IEP Strasbourg, and EM Strasbourg Business School, France;2. University of Sousse, IHEC Sousse, Tunisia;1. FGV/Sao Paulo School of Economics, Brazil;2. FGV/Sao Paulo School of Business Administration, Brazil
Abstract:Sovereign credit rating is a condensed assessment of a country's ability to repay its public debt in a timely fashion. Downward wage rigidity has been considered as a critical determinant of various macroeconomic and financial phenomena. This study examines the effect of a country's wage rigidity on its sovereign credit rating after measuring downward wage rigidities based on a regime-switching model. The results indicate that greater wage rigidity induces lower sovereign credit rating. We find that wage rigidity amplifies cash flow fluctuations and magnified cash flow volatility negatively affects sovereign credit rating.
Keywords:
本文献已被 ScienceDirect 等数据库收录!
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号