International bank flows to emerging markets: Influence of sovereign credit ratings and their regional spillover effects

Kim, S; Wu, E

International bank flows to emerging markets: Influence of sovereign credit ratings and their regional spillover effects

Kim, S Wu, E

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Publisher:: Blackwell Publishing Ltd
Publication Type:: Journal Article
Citation:: Journal of Financial Research, 2011, 34 (2), pp. 331 - 364
Issue Date:: 2011-01

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Field	Value	Language
dc.contributor.author	Kim, S	en_US
dc.contributor.author	Wu, E	en_US
dc.date.issued	2011-01	en_US
dc.identifier.citation	Journal of Financial Research, 2011, 34 (2), pp. 331 - 364	en_US
dc.identifier.issn	0270-2592	en_US
dc.identifier.uri	http://hdl.handle.net/10453/17256
dc.description.abstract	We examine whether changes in sovereign credit assessments help determine international bank flows to emerging countries. We focus on the bank flows of G7 countries to a sample of 55 emerging market borrowers for 19952008. We find evidence indicating that sovereign credit rating revisions have significant and positive influences on international bank flows from developed markets even after controlling for other determinants. In addition,we find strong regional rating spillover effects. Ratings improvements in one emerging market region tend to reduce bank flows to the other regions. However, there is an exception from the Asia Pacific to Eastern Europe.	en_US
dc.publisher	Blackwell Publishing Ltd	en_US
dc.relation.ispartof	Journal of Financial Research	en_US
dc.relation.isbasedon	10.1111/j.1475-6803.2011.01293.x	en_US
dc.subject.classification	Finance	en_US
dc.title	International bank flows to emerging markets: Influence of sovereign credit ratings and their regional spillover effects	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.citation.volume	34	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
utslib.copyright.status	open_access
pubs.consider-herdc	true	en_US
pubs.issue	2	en_US
pubs.volume	34	en_US

Abstract:

We examine whether changes in sovereign credit assessments help determine international bank flows to emerging countries. We focus on the bank flows of G7 countries to a sample of 55 emerging market borrowers for 19952008. We find evidence indicating that sovereign credit rating revisions have significant and positive influences on international bank flows from developed markets even after controlling for other determinants. In addition,we find strong regional rating spillover effects. Ratings improvements in one emerging market region tend to reduce bank flows to the other regions. However, there is an exception from the Asia Pacific to Eastern Europe.

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http://hdl.handle.net/10453/17256