The impact of ICT diffusion on sovereign cost of debt

Kotzinos, Apostolos, Psychoyios, Dimitris and Vlastakis, Nikolaos ORCID: https://orcid.org/0000-0001-6411-7708 (2021) The impact of ICT diffusion on sovereign cost of debt. International Journal of Banking, Accounting and Finance, 12 (1). pp. 16-51. ISSN 1755-3830

[thumbnail of The impact of ICT diffusion on sovereign cost of debt]
Preview
PDF (The impact of ICT diffusion on sovereign cost of debt) - Accepted Version
Download (1MB) | Preview

Abstract

We examine the effect of a country's level of information and communication technologies (ICT) diffusion on its credit rating and cost of debt. ICT diffusion is approximated using the Networked Readiness Index, which is designed to capture a country's capacity and preparedness to participate in the digital economy. We adopt a modified random effects approach which allows us to distinguish between short and long run effects on a dataset of 65 countries for a time span of ten years. We show that ICT have a significant impact on a country's credit rating and cost of debt which is robust to the presence of other variables proposed in the literature. The effect is stronger for non-OECD countries, indicating a pathway for developing countries to improve their access to debt markets. Our conclusions are robust to the advent of the recent financial crisis.

Item Type: Article
Additional Information: Funding Information: This research has been partly supported by the University of Piraeus Research Center. Publisher Copyright: Copyright © 2021 Inderscience Enterprises Ltd.
Uncontrolled Keywords: credit ratings,developing countries,e-readiness,ict,information and communication technologies,sovereign debt,accounting,finance,economics and econometrics ,/dk/atira/pure/subjectarea/asjc/1400/1402
Related URLs:
Depositing User: LivePure Connector
Date Deposited: 08 Aug 2022 09:30
Last Modified: 02 Oct 2022 04:57
URI: https://ueaeprints.uea.ac.uk/id/eprint/87120
DOI: 10.1504/IJBAAF.2021.111802

Actions (login required)

View Item View Item