The Antecedence Of Credit Rating Providence: Evidence From Ipos In Thailand

Abstract

Today, innovation progresses in forward along with cyber technologies. There is no more necessary for investors to know a company in person to do their fundraising. Instead, companies would require to show a good signal to funders while they prior offer their shares in stock market as the initial public offerings (IPOs). One way is popular and useful is to represent their trust through credit rating, called “credit rating providence”. Credit rating providence allow stakeholders, including potential funders, to see a level of trust that credit rating providence becomes popularity in this cyber decades. However, there is still limited studies have investigated how credit rating can be provided and created before and during the IPO process.  This study utilizes the signaling theory and the credit rating literature to display the side of view on this issue. This study is based on financial data of 438 firms that went public in Thailand from 2008 to 2019, provides evidence in support of a positive relationship that the antecedences as proactive leadership, competitive learning competency, firm resource readiness affects credit rating providence significantly.