Carlos Salvador

• Doctor of Economics
• Professor (Assistant) at University of Valencia

This paper disentangles and quantifies the sources of sovereign rating adjustments issued by the main rating agencies (Fitch, Standard and Poor's and Moody's) because of the global financial and European sovereign debt crises. We use a methodology (Rating Adjustment Decomposition) that allows us to decompose and quantify the portion of the rating a...

We examine the relationship between bank bailouts and sovereign risk in 35 countries and 19 bailouts from 2005 to 2015. Bailouts negatively affect sovereign ratings, with rating agencies consistently perceiving higher risk when a country’s banking system has been rescued (risk-increasing effect). The increase in public debt as a result of the bank...

This paper provides evidence of the importance of size in explaining the impact of financing conditions on firms´ investment rate. The study makes two main contributions: a) it allows the relationship between indebtedness and firms´ investment to be non-linear; and b) it contrasts whether the impact of indebtedness and the degree of financial restr...

The aim of this paper is to provide empirical evidence of the importance of financial variables in explaining differences in investment rates among firms. The main contributions of the study are twofold: the use of a variable that approximates the degree of financial constraint, and the effect of indebtedness on investment is allowed to be non-line...

This paper analyses bank rating dynamics in Europe and the United States from 2000 to 2016. In particular, two questions are addressed: (i) whether the rating agencies replicate prior changes in ratings made by other agencies (the lead-lag strategy) and (ii) whether previous rating signals (changes in ratings and in watchlist status) issued by an a...

Since the final decades of the 20th century, university education has witnessed rapid growth. However, the quality of the education has varied a lot within the different programs around the world. How can we measure quality in university education? A number of institutions release annual global rankings of universities according to academic fields....

Nowadays, most of the students in first course at University are from the so-called Generation Z. Since a young age, these students have been used digital technology such as internet, mobile phones, tablets and laptops developing certain skills. But a large majority of these students have some deficiencies such as low knowledge of mathematics, scar...

The global financial crisis and European sovereign debt crisis underlined the links between the banking sector and sovereign risk. This paper uses a machine learning technique (random forest regression) to examine whether sovereign ratings account for the potential spillovers from the banking sector to sovereign risk. To do so, we use a panel of so...

This paper analyses the effect of rating signals on banks’ stock market returns during the period 2004–2012. The results obtained show that investors respond to rating announcements. Specifically, it is found that before the financial crisis, positive rating signals issued by Standard and Poor's and Moody's, and negative ratings signals issued by F...

This paper studies the impact of the subprime crisis on the ratings issued by the rating agencies in evaluating the solvency of banks. After ascertaining a significant worsening of ratings after the crisis, the paper hypothesises the possibility that this worsening is due not exclusively to a deterioration in the banks’ credit quality, but also to...

The ratings described by the Bank of England’s Financial Stability Paper (2011) are an ordinal ranking of a borrower’s, or a security’s, credit quality, evaluated by a rating agency on the basis of a fundamental analysis of the financial and legal information by the issuer of a security. Therefore they have an important role in financial markets, b...

Este trabajo analiza los diversos factores que pueden condicionar la posición en los llamados Rankings de las universidades en términos de los indicadores de productividad. En concreto se contrasta la existencia de la influencia de la especialización, por un lado, y del entorno, por otro, en el que operan las universidades. Para ello se utilizan la...

A rating is an indicator, normally drawn up by a specialized agency, which measures the solvency of an entity or issue of assets by means of a categorical scale. The ultimate purpose of ratings is to inform other market agents (investors and regulators) regarding the solvency of the entities evaluated and/or of the assets issued. The rating reduces...