The Impact of Corporate Governance and Regulation on Banks’ Ratings

• Main Authors: Wei-chih Wang, 王韋智
• Other Authors: Deng-cai Tu
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/62942762179295444103

碩士 === 雲林科技大學 === 財務金融系碩士班 === 98 === The main purpose of this study is using data of Bankscope 160 banks of 46 countries of their financial reports and Moody’s financial strength ratings to investigate the relationship of corporate governance, regulation and banks’ ratings form year 2008 to 2009. Empirical results show that government own bank has worse rating than others. Government ceiling on bank’s capital requirements more stringent will enable banks to reduce lending limit loans, and bank’s profitability decline, increase the risk of bank failures, thus bank’s rating decline. There is a significant impact between the degree of bank’s disclosure and rating. The model prediction accuracy is 0.675. Consider the type I error and type II error. We use W.E. to performance measurement of model, and W.E. is 0.538. Although W.E. is lower than prediction accuracy, but the model in predicting rating also retain some explanatory power in the study.