AN EMPIRICAL ANALYSIS OF MUNICIPAL BOND RATINGS IN VIRGINIA
Yaw A. Badu
(Associate Professor, Department of Economics and Finance, School of Business, Virginia State University, Petersburg, VA 23806.)
Kenneth N. Daniels
(Assistant Professor, Department of Finance and Insurance, School of Business, Virginia Commonwealth University, Richmond, VA 23284.)
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Abstract
The paper investigates the determinants of municipal bond ratings in Virginia using an ordered‐probit analysis. We find that economic factors are the key determinants of municipal bond ratings in the State. Our ordered‐probit model correctly predicts approximately 70% of the actual sample which is not subject to sample selection bias.
Citation
Badu, Y.A. and Daniels, K.N. (1997), "AN EMPIRICAL ANALYSIS OF MUNICIPAL BOND RATINGS IN VIRGINIA", Studies in Economics and Finance, Vol. 17 No. 2, pp. 81-97. https://doi.org/10.1108/eb028733
Publisher
:MCB UP Ltd
Copyright © 1997, MCB UP Limited