Investors Perception and Performance of Credit Rating Agencies in India

No Thumbnail Available

Date

2016

Journal Title

Journal ISSN

Volume Title

Publisher

Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka

Abstract

Credit ratings agencies play an important role in the development of capital market in India. It protects the interest of investors by forewarning the risks associated with the capital market instruments. In this backdrop, the present study vigilantly analyses the investors’ perception and performance of credit rating agencies. This study is conducted through a survey method among 400 investors. The study found that majority of the investors relatively new to the credit rating based investments and brokers are the major source of information for them. The study also has identified four predominant factors of perception of investors towards credit rating agencies as rudimentary perception on credit ratings, knowledge on rating agencies, knowledge on rating mechanism and knowledge on utility of ratings by using factor analysis. The study also identified factors influencing the performance of credit rating agencies as information attainment, investment decision making, and trustworthiness, forewarning risk and service quality.

Description

Keywords

Credit rating in India, Investors’ perception, Financial markets, Debt instruments

Citation

Vasan, M. and Yoganandan, G. 2016. Investors Perception and Performance of Credit Rating Agencies in India. In Proceedings of the 2nd International Conference in Accounting Researchers and Educators (ICARE 2016), 11th January 2017. Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.

Collections

Endorsement

Review

Supplemented By

Referenced By