Research on the Competitiveness of Crediting Rating Industry using PCA Method
Abstract: This study
investigates the industry competitiveness problem, which plays an important
role in crediting rating industry safety. Based on a comprehensive literature
review, we found that there is much room to improve regarding of
competitiveness assessment in crediting rating industry.
Design/methodology/approach: In this study, we propose the PCA (Principal
Component Analysis) method to illustrate the problems.
Findings: America and Canada’s companies (such as S&P and DBRS) take
the leading place in credit rating industry, and Japan’ agencies have made
great progress in industry competition (such as JCR), while China’ agencies are
lagging behind (Such as CCXI).
Research limitations/implications: It requires multi-year data for
analysis, but the empirical analysis is carried out based on one-year data
instead of multi-year data.
Practical implications: The research can fill the gaps for credit rating
industry safety research. And study findings and feasible suggestions are
provided for academics and practitioners.
Originality/value: This paper puts forward the competitive indicators of
credit rating industry, and indicators of cause and outcome are considered.
Author: Qi Feng, Menggang Li,
Daqing Gong
Journal Code: jptindustrigg140097
