Home  Journals  Financial Analytics: Science and Experience  5(29) - 2010 May

Valuation of interrelation between company’s value and its level of credit worthiness

Available online: 18 May 2010

Subject Heading: Financial analysis

JEL Classification: 

Interrelation between company’s value and its level of creditworthiness is in the center of economic debates in recent time. This paper considers systems of credit rankings employed by rating agencies and economic approaches for company’ valuation. Processing the data, we refer to correlation method and ordered dependent variable method and find out that company’s market capitalization does impact on its creditworthiness, price-to-sales ratio predicts creditworthiness better in comparison with other relative coefficients of firm’s value.

Keywords: cost, rating, solvency, market, capitalization

View all articles of issue

ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 17, Iss. 1 March 2024

Archive