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A major source of external funding for US airports comes from issuing municipal bonds. Credit rating agencies evaluate the bonds using multiple factors, but the judgments behind the ratings are not well understood. This paper examines if airport rate-setting methods affect the bond ratings of US airports.

Using a set of unbalanced panel data for 58 hub airports from 2010 to 2019, we examine the effect of the rate-setting methods and other airport characteristics on Fitch’s airport bond rating.

We find that compensatory airports consistently receive a very high bond rating from Fitch. The probability of getting a very high Fitch rating increases by ∼28 percentage points for a compensatory airport. Additionally, the probability of getting a very high rating is about 33 percentage points higher for a legacy hub.

The study uses Fitch bond ratings. Future studies could examine if S&P’s and Moody’s ratings are also influenced by airport rate-setting methods and legacy hub status.

The results uncover the linkage between bond ratings and their determinants for US airports. This information is important for investors when assessing airport creditworthiness and for airport operators as they manage capital project financing.

This is the first study to evaluate the effects of rate-setting methods on airport bond rating and also the first to document a statistically significant relationship between airports’ legacy hub status and bond ratings.

The sharing economy enables apartment owners to generate income from their assets. “Agoda Homes” is an online travel agent (OTA) that directly competes with Airbnb. A destination has to discover its competitiveness, but few studies have provided an overview of accommodation attributes in each destination, which are crucial to shaping its brand image. This paper aims to illustrate firm-generated content or attributes that apartment owners list about their properties on an OTA platform to comprehend factual information about apartments in each destination with various star ratings and user ratings and to formulate a research model for future studies.

Informational content and accommodation attributes for apartments are automatically collected using a Web scraping tool (the Data Miner). Descriptive statistics and text analysis (word cloud and word frequency) are used to analyze data.

Findings reveal the primary location, facilities, cleanliness and safety attributes for all apartments in each destination, along with star ratings and user ratings. A research framework for scholars is also suggested. Guidelines for stakeholders in the tourism industry are additionally furnished.

This work concentrates on apartments, which have received less attention in the tourism literature. The study gathers factual data from a website to mitigate respondent bias issues inherent in the traditional survey methods.

The purpose of the study is to measure the performance level of halal compliance practices by the halal-certified restaurants in Malaysia and rank and rate them based on several dimensions of halal compliance.

A total of 320 halal restaurants were surveyed. The absolute measurement approach of the analytic hierarchy process (AHP) was applied to rank and rate the restaurants. Finally, ANOVA and independent t-test were applied to assess if there is any significant difference in halal compliance performance between different groups of the respondents.

The AHP application resulted in only 19 restaurants (5.94%) achieving an “Excellent” rating. A significant difference has been observed between different groups of the respondents regarding their halal compliance performance.

An onsite audit and ranking of all the restaurants in Malaysia were beyond the scope of the study. The research was able to rank only 320 restaurants across Malaysia.

The findings and methodology of the study will provide policymakers with a clear roadmap for establishing a comprehensive rating system in the fields of the halal food industry to enhance the quality and integrity of the halal food management system.

To the best of the authors’ knowledge, this is the first time an empirical approach, like AHP, has been used to determine how Malaysia’s halal-certified restaurants stack up against one another. Similar studies can be carried out in other sectors of the halal industry as well as in similar context.

This paper aims to investigate the relationship between corporate environmental, social and governance (ESG) ratings and leverage manipulation and the moderating effects of internal and external supervision.

The authors draw on a sample of Chinese non-financial A-share-listed firms from 2013 to 2020 to explore the effect of ESG ratings on leverage manipulation. Robustness and endogeneity tests confirm the validity of the regression results.

ESG ratings inhibit leverage manipulation by improving social reputation, information transparency and financing constraints. This effect is weakened by internal supervision, captured by the ratio of institutional investor ownership, and strengthened by external supervision, captured by the level of marketization. The effect is stronger in non-state-owned firms and firms in non-polluting industries. The governance dimension of ESG exhibits the strongest effect, with comprehensive environmental governance ratings and social governance ratings also suppressing leverage manipulation.

Firms should strive to cultivate environmental awareness, fulfil their social responsibilities and enhance internal governance, which may help to strengthen the firm’s sustainability orientation, mitigate opportunistic behaviours and ultimately contribute to high-quality firm development. The top managers of firms should exercise self-restraint and take the initiative to reduce leverage manipulation by establishing an appropriate governance structure and sustainable business operation system that incorporate environmental and social governance in addition to general governance.

Policymakers and regulators should formulate unified guidelines with comprehensive criteria to improve the scope and quality of ESG information disclosure and provide specific guidance on ESG practice for firms. Investors should incorporate ESG ratings into their investment decision framework to lower their portfolio risk.

This study contributes to the literature in four ways. Firstly, to the best of the authors’ knowledge, it is among the first to show that high ESG ratings may mitigate firms’ opportunistic behaviours. Secondly, it identifies the governance factor of leverage manipulation from the perspective of firms’ subjective sustainability orientation. Thirdly, it demonstrates that the relationship between ESG ratings and leverage manipulation varies with the level of internal and external supervision. Finally, it highlights the importance of governance in guaranteeing the other two dimensions’ roles by decomposing overall ESG.

This study aims to examine the impact of consumer risk appetite, biases (specifically negative recency bias), and the importance of reviews in enhancing information quality. By analyzing these variables, the authors gain insights into their role in enriching the overall information spectrum available to consumers. The findings contribute to a better understanding of how risk appetite, biases and consumer reviews shape the quality of information.

The questionnaire assessed the relationship between dependent and independent variables by asking participants to rate their experiences in relevant scenarios. Variance-based structural equation modeling with the ADANCO program was used to examine the data. ADANCO software is used explicitly for variance-based structural equation modeling. To evaluate research models and test hypotheses, partial least square path modeling is used.

The efficiency of reviews and ratings is greatly influenced by consumer risk appetite. Businesses should focus on clients who are willing to take risks and balance positive and negative feedback. It is essential to comprehend how customers understand reviews. Credibility is increased by taking biases into account and encouraging unbiased criticism. Promoting thorough reviews strengthens influence. Monitoring and making use of these elements improve online reputation and commercial success.

The research has limitations due to the simplicity of the attributes taken into account and the requirement for a larger sample size. Overcoming barriers to promote consistent client feedback is essential, and tailored emails can help with assessment generation. Increased customer participation in writing evaluations can be achieved by removing obstacles and highlighting the advantages of participation.

Businesses and buyers rely on this “organically” generated content as the basis of their promotional strategy and buying decisions. Most of the research is related to consumer reviews, their behavior and the importance of social validation. However, some critical aspects related to this need further investigation.

This paper aims to examine the relationship between environmental, social and governance (ESG) performance and systemic risk sensitivity of Chinese listed companies. From the consumer loyalty and investor structure perspectives, the relationship between ESG performance and systemic risk sensitivity is analyzed.

Since Morgan Stanley Capital International (MSCI) ESG officially began to analyze and track China A-shares from 2018, 275 listed companies in the SynTao Green ESG testing list for 2015–2021 are selected as the initial model. To measure the systematic risk sensitivity, this study uses the beta coefficient, from capital asset pricing model (CPAM), employing statistics and data (STATA) software.

The study reveals that high ESG rating companies have high corresponding consumer loyalty and healthy trading structure of institutional investors, thereby the systemic risk sensitivity is lower. This paper reveals that companies with high ESG rating are significantly less sensitive to systemic risk than those with low ESG rating. At the same time, ESG has a weaker impact on the systemic risk of high-cap companies than low-cap companies.

The study helps the companies understand the influence of market value on the relationship between ESG performance and systemic risk sensitivity. Moreover, this paper explains explicitly why ESG performance insulates a firm’s stock from market downturns with the lens of consumer loyalty theory and investor structure theory.

The paper provides new insights on the company’s ESG performance that significantly affects the company’s systemic risk sensitivity.

This study aims to provide further insights into the connection between corporate social responsibility (CSR) and companies’ credit ratings, while also exploring the role of corporate governance as a moderating factor. The hypotheses for this relationship are rooted in both legitimacy and stakeholder theories.

Using a sample of French non-financial listed firms from 2007 to 2020, this paper uses the ordered probit model introduced by Greene (2000). The issue of endogeneity has also been addressed.

The study reveals that CSR practices positively impact companies’ credit ratings by enhancing solvency and financial performance. Specifically, firms that prioritize CSR, particularly in the social and environmental dimensions (such as community relations, diversity, employee relations, environmental performance and product characteristics), tend to have higher credit ratings and a reduced risk of default. This suggests that credit rating agencies likely incorporate CSR performance when assigning credit ratings. Furthermore, the quality of corporate governance acts as a moderator, strengthening the relationship between CSR and credit ratings. The findings remain robust even after accounting for key firm attributes and addressing potential endogeneity between CSR and credit ratings.

This research provides valuable guidance for policymakers, corporate managers, investors and other stakeholders, as it offers insights into the influence of CSR activities on risk premiums and financing costs. For financial institutions, expanding credit decisions to encompass non-financial factors such as CSR can result in more accurate predictions of firm credit quality compared to relying solely on financial indicators.

To the best of the authors’ knowledge, this study stands out as the first to systematically examine the relationship between CSR and credit ratings within the French context. Moreover, it distinguishes itself by investigating the moderating influence of corporate governance on this relationship, setting it apart from prior research.

This paper aims to investigate how a US firm’s political landscape affects the integration of environmental, social and governance (hereafter ESG) measures in CEO compensation contracts, thereby affecting the firm’s ESG performance and credit rating.

Based on the results of state senatorial and presidential elections and the location of a US firm’s headquarters, the authors categorize whether a firm has a political environment that is predominantly Democratic (blue) or Republican (red). The empirical analyses are based on a sample of US firms in the period 2014–2021.

The authors find that firms in blue states are more likely to link CEO compensation to ESG performance measures. Further, the results show that firms in blue states with ESG-linked compensation contracts have better ESG performance. Lastly, the authors find evidence that a firm’s ESG performance has a positive impact on its credit rating, but the impact is weakened if firms in red states link ESG performance to executive compensation.

To the best of the authors’ knowledge, this is the first research that explores how a firm’s political environment affects the use of ESG performance measures in CEO compensation contracts. Furthermore, the authors contribute to the literature by showing evidence that the political environment interacts with the impact of ESG-linked compensation incentives on the firm’s ESG performance and, thus, its credit rating.

This paper aims to examine the informational value of credit rating changes for investors. The article analyses whether credit rating changes indicate the future financial performance of a firm.

The study employs pooled time-series cross-section regression technique and two-sample t-test for analysis. The paper utilizes a firm's operating profit as a proxy of its future financial performance to understand what inference can be drawn about future financial performance from a change in a firm's credit rating.

The paper finds that a firm operating profit declines in the year after a credit rating downgrade. However, no such significant relationship is evident in the case of a rating upgrade. The results are consistent across rating categories and individual years of the sample period.

The study uses non-financial corporate rating data; hence, the findings may not apply to credit rating changes in financial corporates and structured finance.

Investors and analysts can incorporate credit rating downgrade by CRAs as a key input in a firm's future financial forecast. Analysts and investment managers can also look at credit rating changes of firms in the same industry and draw a definite conclusion about which firm is likely to see a higher deterioration in performance.

The author has not come across any literature that directly investigates credit rating changes from the perspective of information content about future financial performance.

Prior studies generally focus on income smoothing through discretionary accruals and document that managers have incentives to smooth earnings due to various reasons. This paper aims to focus on income smoothing through research and development (R&D) management and examine whether and how income smoothing through R&D management affects credit rating agencies’ perception of firm risk.

The authors use financial statement data from the CRSP/Compustat Merged data set universe for the period from 1992 to 2019 after excluding financial and utility industries. The authors follow the model for credit ratings used in previous literature to test the hypothesis. Specifically, the authors use an ordered probit model to express credit ratings as a function of income smoothing attributes.

The authors find that R&D-based income smoothing improves a firm’s credit rating. However, the positive effect of R&D-based income smoothing on credit ratings is less than that of accruals-based income smoothing. This study also shows that the positive effect of R&D-based income smoothing is more pronounced for firms less subject to opportunistic incentives, further strengthening the notion that managers smooth earnings through R&D management to provide more informative earnings.

This study contributes to the income smoothing literature in several ways. First, the authors contribute to the research by showing that managers’ income smoothing activity through R&D management positively affects firms’ credit rating. Second, the authors also document the relative benefits of the two different income smoothing techniques in terms of improving credit agencies’ perception of firms’ creditworthiness.