The potential of conflicts of interest arising in the activities of credit rating agencies in Ukraine
-
Received April 3, 2017;Accepted May 26, 2017;Published July 18, 2017
-
Author(s)Mykhailo Rebryk , Yuliia Rebryk , Sergii Sokol ,Link to ORCID Index: https://orcid.org/0000-0003-2721-2997
-
DOIhttp://dx.doi.org/10.21511/ppm.15(2-1).2017.06
-
Article InfoVolume 15 2017, Issue #2 (cont. 1), pp. 222-233
- TO CITE АНОТАЦІЯ
-
Cited by1 articlesJournal title: Cogent Business & ManagementArticle title: Elements of Credit Rating: A Hybrid Review and Future Research AgendaDOI: 10.1080/23311975.2021.1878977Volume: 8 / Issue: 1 / First page: / Year: 2021Contributors: Prashant Ubarhande, Arti Chandani, David McMillan
- 1313 Views
-
456 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
This paper presents a comprehensive system of 38 indicators, which allows identification of possible endogenous sources and evaluation of the potential of conflicts of interest arising both at the corporate (in models of ownership, business and financial activities, corporate governance and organizational structures) and operational (analyst) levels of credit rating agencies (CRAs). Testing of proposed system of indicators was carried out based on the content analysis of the public information on the activities of five authorized credit rating agencies of Ukraine.
It is determined that at the beginning of 2017 the most sensitive to the risk of conflicts of interest were “Standard Rating” (74% of threat signals of the total number of indicators), “Expert Rating” (57%) and “Rurik” (37%). The highest potential of conflicts’ of interest escalation was identified in the models of financial activities (80% of threat signals of the total number of indicators of that group) and models of ownership of Ukrainian CRAs (63%).
The estimations of the risk level are proposed to be regarded mainly as signals of the potentially high sensitivity of the particular CRA to the risk of conflicts’ of interest escalation.
Such signals, in particular, can be used by the regulators for carrying out remote monitoring activities of CRAs, for adopting supervisory and regulatory decisions. In turn, managers and owners of rating agencies can conduct a more detailed analysis of the detected potential sources of conflict of interest with the aim of identification, localization, and elimination of shortcomings in the system of conflict of interest management.
- Keywords
-
JEL Classification (Paper profile tab)G24, G32, G38, M14
-
References26
-
Tables5
-
Figures1
-
- Figure 1. The total number of detected signals about the threat of conflicts’ of interest escalation in the activities of Ukrainian CRAs (at the beginning of 2017)
-
- Table 1. The warning signals concerning the potential of conflicts of interest in models of ownership of CRAs in Ukraine
- Table 2. The warning signals concerning the potential of conflicts of interest in models of business activities of CRAs in Ukraine
- Table 3. The warning signals concerning the potential of conflicts of interest in models of financial activities of CRAs in Ukraine
- Table 4. The warning signals concerning the potential of conflicts of interest in models of corporate governance and organizational structures of CRAs in Ukraine
- Table 5. The warning signals concerning the potential of conflicts of interest in models ensuring the independence of employees of CRAs in Ukraine
-
- Babenko, M., & Chernyj, R. (2012). Tesnyj krug. Kommer¬sant-Ukraina.
- Bai, L. (2010). On Regulating Conflict of Interests in the Credit Rating Industry.
- Beinert C., Reichling, P., & Vogt, B. (2007). The Discriminative Power of Rating Functions. Banks and Bank Systems, 2(1).
- Bergevin, P. (2010). Addicted to Ratings: The Case for Reducing Governments’ Reliance on Credit Ratings. C.D. Howe Institute Backgrounder, 130.
- BizDb.co.uk. (2017). Global Private Rating Company Standardrating Ltd: General Information.
- Coffee, John C., Jr. (2011). Ratings Reform: The Good, The Bad, and The Ugly. Harvard Business Law Review, 1.
- Crumley, D. G. (2012). Credit Rating Agencies and Conflicts of interest.
- Endole.co.uk. (2017). Mr. Jason Hughes Director Profile.
- Fulghieri, P., Strobl G., & Xia, H. (2011). The Economics of Solicited and Unsolicited Credit Ratings.
- Katz, J., Salinas, E., & Stephanou, C. (2009). Credit Rating Agencies. No Easy Solutions.
- Kozmenko, S., & Plastun, O. (2012). The necessity of stock markets information incorporation into the methodology of credit rating agencies. Investment Management and Financial Innovations, 9(3).
- NSSMC. (2012). Pro zatverdzhennia Poriadku podannia informatsii upovnovazhenymy reitynhovymy ahentstvamy. Rishennia NKTsPFR vid 11.12.2012 No. 1767.
- NSSMC. (2015). Pro konkurs z vyznachennia upovnovazhenykh reitynhovykh ahentstv. Polozhennia, zatverdzhene Rishenniam NKTsPFR vid 23.03.2015 No. 364.
- Opp, C. C., Opp, M. M., & Harris, M. (2013). Rating agencies in the face of regulation. Journal of Financial Economics, 108, 46-61.
- Ostriv. (2017). Pro kompaniiu. Sait ZAT “Konsaltynhova Firma “Ostriv”.
- Partnoy, F. (2009). Rethinking Regulation of Credit Rating Agencies: An Institutional Investor Perspective. San Diego Legal Studies Paper, 09- 014.
- Pererva, H. (2012). Tochnist otsinok reitynhovykh ahentstv. Nezalezhnyi Audytor, 10.
- Pro dotrymannia etychnykh norm i standartiv povedinky na rynku reitynhovykh posluh Ukrainy: Memorandum, pidpysanyi RA IBI-Reitynh, NRA Riurik y RA Ekspert- Reitynh 24.11.2010.
- Prozorro.gov.ua (2016). Nadannia posluh z reitynhuvannia: oholoshennia pro provedennia doporohovoi zakupivli Upravlinnia stratehichnoho rozvytku mista Ternopilskoi miskoi rady.
- Reitynhovi ahentstva. (2017). Zahalnodostupna informatsiina baza danykh NKTsPFR.
- The Board of the IOSCO. (2012). Credit Rating Agencies: Internal Controls Designed to Ensure the Integrity of the Credit Rating Process and Procedures to Manage Conflicts of interest.
- The Board of the IOSCO. (2015). Code of Conduct Fundamentals For Credit Rating Agencies.
- The European Parliament and the Council. (2009, September). Regulation (EC) No. 1060/2009 On credit rating agencies.
- The European Parliament and the Council. (2012, March 21). Regulation (EC) No. 449/2012 Supplementing Regulation (EC) No 1060/2009 of the European Parliament and of the Council with regard to regulatory technical standards on information for registration and certification of credit rating agencies.
- The European Securities and Markets Authority. (2011, December 22). Regulatory technical standards on the information for registration and certification of credit rating agencies.
- The Technical Committee of the IOSCO. (2003). Report on the Activities of Credit Rating Agencies.
-
Influencer marketing’s impact on credibility and purchase intention: A study on University of Bisha students in Saudi Arabia
Mudathir Saad, Abdelrehim Awad
, Adel Fathy Aziz
, Talaat Rashad Shma
doi: http://dx.doi.org/10.21511/im.21(1).2025.26
Innovative Marketing Volume 21, 2025 Issue #1 pp. 326-337 Views: 2568 Downloads: 1302 TO CITE АНОТАЦІЯThis study holds significance due to the increasing impact of influencer marketing on consumer behavior, particularly among the youth demographic in Saudi Arabia. This study aims to examine how influencer marketing influences perceived credibility and purchase intention, emphasizing the roles of transparency and cultural factors in shaping consumer behavior.
A descriptive-analytical method was utilized, the research was conducted at University of Bisha, incorporating a structured survey to gather data from 384 university students, both male and female. The sample was meticulously chosen to embody the characteristics of young consumers, a group recognized for its significant involvement with social media channels and vulnerability to influencer marketing tactics. The findings indicate that the traits of influencers play a crucial role in boosting purchase intention (β = 0.42, p < 0.001). Furthermore, the influence of brand credibility on purchase intention is significant (β = 0.51, p < 0.001), and it serves as a partial mediator in the connection between influencer characteristics and purchase intention (indirect effect = 0.27, p < 0.001). The results underscore Snapchat’s prominence as the leading platform among participants, illustrating its significance for focused influencer marketing initiatives. Marketers are advised to prioritize transparent and authentic collaborations with influencers to strengthen brand credibility and foster consumer trust. Emphasizing partnerships with influencers whose values align with students’ interests on Snapchat will enhance engagement and drive purchasing behavior. This information provides actionable direction for marketers aiming to enhance their influencer marketing approaches, cultivating enduring consumer confidence and sustainable brand development among younger demographics. -
Factors affecting accrual accounting reform and transparency of performance in the public sector in Vietnam
Phuong-Nguyen Thi Thanh, Hai Phan Thanh
, Tung-Nguyen Thanh , Tien-Vo Thi Thuy doi: http://dx.doi.org/10.21511/ppm.18(2).2020.16
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 180-193 Views: 2118 Downloads: 796 TO CITE АНОТАЦІЯThis study was conducted to determine the factors and their influence on accrual accounting reform in the public sector in Vietnam. Combining qualitative and quantitative research methods based on empirical surveys of 268 accountants, controllers, and auditors working in state agencies such as the Department of Finance, state treasuries and agencies receiving revenues from the state budget in 2019. This study shows that six factors influence the reform of the accounting system in the public sector in Vietnam to accrual-based: accounting staff – especially their expertise, competence, and work experience; training and support of the consulting experts; costs of the accounting reform; level of information technology application; funding and assistance from international organizations; legal environment.
At the same time, the accrual-based accounting reform will have a positive impact on improving the transparency and efficiency of public sector operations in Vietnam. Among the factors affecting accounting reform, the legal environment factor is the most influential determinant, followed by the contingent of accountants. The study’s limitation is that the new experimental investigation is only conducted with a small sample size and in a short period. However, the research results are also a useful reference for those who are interested in the context that Vietnam is preparing to have strong reforms in accounting in the public sector in the coming time. -
Forensic audit of public debt in the financial control system of Ukraine
Hanna Filatova, Nataliia Ovcharova
, Olena Kravchenko
doi: http://dx.doi.org/10.21511/afc.06(1).2025.01
Accounting and Financial Control Volume 6, 2025 Issue #1 pp. 1-12 Views: 1979 Downloads: 620 TO CITE АНОТАЦІЯForensic audit of public debt is an important tool for ensuring financial transparency and effective public finance management. In the context of Ukraine, given the difficult economic situation and high level of public debt, the use of forensic audit is of particular importance. The study aims to conduct a forensic audit of Ukraine’s public debt by assessing the consistency of financial statements of key government agencies, identifying discrepancies, and evaluating their potential impact on financial stability. The methodology includes a cross-analysis of financial data from the Ministry of Finance of Ukraine, the National Bank of Ukraine, the Accounting Chamber of Ukraine, and the State Treasury Service. The study also includes an assessment of compliance with international public sector auditing standards (ISSAI, IPSAS, and OECD principles). The results show discrepancies in key public debt indicators between the different reporting institutions, with variations in total debt, debt service costs, and classification methodologies. Key findings indicate inconsistencies in the timing of data publication, differences in accounting methodology, and gaps in debt transparency. These discrepancies pose risks to the effectiveness of financial policy, external creditworthiness, and overall macroeconomic stability. The study concludes that strengthening coordination between government agencies and integrating forensic audit mechanisms into the system of regular financial oversight is necessary to increase the transparency of public debt and reduce financial risks. The proposed recommendations will help to improve fiscal management and ensure the reliability of financial reporting in Ukraine's public debt management system.
Acknowledgment
Prepared as part of a research project 101127602-EUEPDM-ERASMUS-JMO-2023-HEI-TCH-RSCH – "EU experience in public debt management: conclusions for Ukraine in the war and post-war period". However, the views and opinions expressed are those of the authors alone and do not necessarily reflect the views of the European Union or the European Executive Agency for Education and Culture (EACEA). Neither the European Union nor EACEA can be held responsible for them.