Showing papers by "Sanket Mohapatra published in 2017"
TL;DR: The authors explored factors that affect the distance between sovereign credit ratings and the ratings assigned to new foreign-currency bonds issued by sub-sovereign entities in 47 emerging markets and developing economies.
Abstract: This article explores factors that affect the distance between sovereign credit ratings and the ratings assigned to new foreign-currency bonds issued by sub-sovereign entities (such as private non-financial corporations, financial firms, and public sector enterprises) in 47 emerging markets and developing economies. Censored and double-hurdle regression models are used to estimate the relative contributions of bond-level, issuer-level, and macroeconomic factors that determine this distance, separately for those rated at or below the sovereign rating and those rated above. For the three quarters or more of sub-sovereign bond ratings that are constrained by the sovereign rating ceiling, a Tobit regression model shows a smaller distance – suggesting stronger sovereign–corporate linkages – for public sector enterprises and financial firms relative to other firms. Riskier global financial conditions are also associated with sub-sovereign bonds being rated closer to the sovereign rating. For the small n...
14 citations
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TL;DR: In this paper, the authors examine how firm-level productivity growth is dependent on a broad range of institutional quality measures at the country level, and show that such institutions exert a statistically and economically significant effect on changes in firm TFP.
Abstract: In this paper, we examine how firm-level productivity growth is dependent on a broad range of institutional quality measures at the country level. Using a sample of 3,446 firms in 58 advanced and emerging economics, we show that such institutions exert a statistically and economically significant effect on changes in firm TFP. We utilize data envelopment analysis to construct firm-level measures of Malmquist productivity, which we then condition on a range of country-level institutions, using both a full set of fixed effects and system generalized method of moments to address potential endogeneity concerns. The baseline effect is robust to alternative measures of institutions, variations in model specification, alternative temporal aggregations, and the inclusion of external instruments. Additional decompositions further reveal that the institutional effect operates via improved productive efficiency (rather than technological progress), and that the key institutions are those associated with rule of law and regulatory quality
2 citations