Sumedha Journal of Management
  • Year: 2017
  • Volume: 6
  • Issue: 3

A Study of Effectiveness of Credit Rating on Equity Investors-Reference to Hyderabad

  • Author:
  • K. Swapna Sri1,3, D. Naresh Reddy2
  • Total Page Count: 8
  • Page Number: 16 to 23

1 Research Scholar, Department of Commerce, Rayalaseema University, Kurnool, A.P. India

2 Department of Commerce, Osmania University, Hyderabad, T.S., India

3Department of Science and Humanities, St. Martins Engineering College, Secunderabad, T.S., India

Online published on 4 November, 2017.

Abstract

In modern financial market the role of credit rating agencies are playing vital role from the investors ’perspective. The present study has been emphasized on the effectiveness of the credit rating on the equity market investors ’decision making. The study had considered the investors opinion through primary data and the cronebach's alpha depicted the reliability of the sample data. The garret ranking has been applied and the result reveals that the management evaluation by the credit rating agencies effectiveness has been ranked 1st and the rating as the basis for investment related decision has got the 9th ranking by the investors. The factor analysis has been applied and the extracted load factors stated that the industry/company analysis and strength or weakness factors effectiveness is observed on the equity investors ’decision making. This paper is useful the retail, HNI, mutual fund managers and foreign institutional investors.

Keywords

Credit rating, Equity investors, Management evaluation, Strength or weakness and Technical/Fundamental analysis