FIRM CREDIT RATING CHANGES, CAPITAL STRUCTURE, AND THE
ASYMMETRIC MODERATING ROLE OF DEBT CAPACITY AND FINANCIAL
CONSTRAINTS

J 2025

FIRM CREDIT RATING CHANGES, CAPITAL STRUCTURE, AND THE ASYMMETRIC MODERATING ROLE OF DEBT CAPACITY AND FINANCIAL CONSTRAINTS

KARAS, Michal; Daniel NĚMEC; Adam P. BALCERZAK a Marek ZINECKER

Základní údaje

Originální název

FIRM CREDIT RATING CHANGES, CAPITAL STRUCTURE, AND THE ASYMMETRIC MODERATING ROLE OF DEBT CAPACITY AND FINANCIAL CONSTRAINTS

Autoři

KARAS, Michal; Daniel NĚMEC; Adam P. BALCERZAK a Marek ZINECKER

Vydání

Journal of Business Economics and Management, VILNIUS, Vilnius Gediminas Technical University, 2025, 1611-1699

Další údaje

Jazyk

angličtina

Typ výsledku

Článek v odborném periodiku

Obor

50200 5.2 Economics and Business

Stát vydavatele

Litva

Utajení

není předmětem státního či obchodního tajemství

Odkazy

URL

Impakt faktor

Impact factor: 2.700 v roce 2024

Označené pro přenos do RIV

Ano

Organizační jednotka

Ekonomicko-správní fakulta

Klíčová slova anglicky

credit rating changes; debt capacity; financial constraints; capital structure; profitability; debt-to-total assets

Štítky

rivok

Příznaky

Mezinárodní význam, Recenzováno

Změněno: 28. 2. 2026 12:37, Eliška Poláčková

Anotace

V originále

This study analyzes how debt capacity and financial constraints impact credit rating changes. Using a comprehensive sample of European companies, we analyze rating upgrades and downgrades separately to allow us to uncover whether the effects differ. Our results show that only one of the four commonly used proxies for debt capacity can explain credit rating changes. Specifically, we find that debt capacity can influence both rating upgrades and downgrades, but financial constraints or profitability can only impact rating downgrades. Our results are robust to various model specifications. The Monte Carlo simulation results reveal that uncertainty related to factors causing rating upgrades increases sharply when debt exceeds 30% of total assets. Similarly, when debt exceeds 50% of total assets, uncertainty related to rating downgrades surges.

Přiložené soubory

25316.pdf

Požádat o autorskou verzi souboru

Citovat

KARAS, Michal; Daniel NĚMEC; Adam P. BALCERZAK a Marek ZINECKER. FIRM CREDIT RATING CHANGES, CAPITAL STRUCTURE, AND THE ASYMMETRIC MODERATING ROLE OF DEBT CAPACITY AND FINANCIAL CONSTRAINTS. Journal of Business Economics and Management. VILNIUS: Vilnius Gediminas Technical University, 2025, roč. 26, č. 6, s. 1329-1357. ISSN 1611-1699. Dostupné z: https://doi.org/10.3846/jbem.2025.25316.

@article{2544077,
   author = {Karas, Michal and Němec, Daniel and Balcerzak, Adam P. and Zinecker, Marek},
   article_location = {VILNIUS},
   article_number = {6},
   doi = {https://doi.org/10.3846/jbem.2025.25316},
   keywords = {credit rating changes; debt capacity; financial constraints; capital structure; profitability; debt-to-total assets},
   language = {eng},
   issn = {1611-1699},
   journal = {Journal of Business Economics and Management},
   title = {FIRM CREDIT RATING CHANGES, CAPITAL STRUCTURE, AND THE ASYMMETRIC MODERATING ROLE OF DEBT CAPACITY AND FINANCIAL CONSTRAINTS},
   url = {https://journals.vilniustech.lt/index.php/JBEM/article/view/25316},
   volume = {26},
   year = {2025}
}

TY  - JOUR
ID  - 2544077
AU  - Karas, Michal - Němec, Daniel - Balcerzak, Adam P. - Zinecker, Marek
PY  - 2025
TI  - FIRM CREDIT RATING CHANGES, CAPITAL STRUCTURE, AND THE ASYMMETRIC MODERATING ROLE OF DEBT CAPACITY AND FINANCIAL CONSTRAINTS
JF  - Journal of Business Economics and Management
VL  - 26
IS  - 6
SP  - 1329-1357
EP  - 1329-1357
PB  - Vilnius Gediminas Technical University
SN  - 16111699
KW  - credit rating changes
KW  - debt capacity
KW  - financial constraints
KW  - capital structure
KW  - profitability
KW  - debt-to-total assets
UR  - https://journals.vilniustech.lt/index.php/JBEM/article/view/25316
N2  - This study analyzes how debt capacity and financial constraints impact credit rating changes. Using a comprehensive sample of European companies, we analyze rating upgrades and downgrades separately to allow us to uncover whether the effects differ. Our results show that only one of the four commonly used proxies for debt capacity can explain credit rating changes. Specifically, we find that debt capacity can influence both rating upgrades and downgrades, but financial constraints or profitability can only impact rating downgrades. Our results are robust to various model specifications. The Monte Carlo simulation results reveal that uncertainty related to factors causing rating upgrades increases sharply when debt exceeds 30% of total assets. Similarly, when debt exceeds 50% of total assets, uncertainty related to rating downgrades surges.
ER  -

KARAS, Michal; Daniel NĚMEC; Adam P. BALCERZAK a Marek ZINECKER. FIRM CREDIT RATING CHANGES, CAPITAL STRUCTURE, AND THE ASYMMETRIC MODERATING ROLE OF DEBT CAPACITY AND FINANCIAL CONSTRAINTS. \textit{Journal of Business Economics and Management}. VILNIUS: Vilnius Gediminas Technical University, 2025, roč.~26, č.~6, s.~1329-1357. ISSN~1611-1699. Dostupné z: https://doi.org/10.3846/jbem.2025.25316.

Přehled o publikaci