Financing Decisions and Market Efficiency Essay

Financing Decisions and Market Efficiency - Essay Example It is therefore important that a company must be innovative and highly efficient in managing its long term and short term financial perspectives in a manner that promotes confidence in its investors and customers. The fast changing technological innovations have facilitated a wide scope of linking elements of finance and market derivatives that have considerable influence on each other. Very often, the market driven compulsions, affect the financial outcome of the corporate bodies, making them financially vulnerable to market forces. Hence, the companies that are listed on the stock exchanges and have definite ratings by the various well respected investors’ services must ensure that they have good feedback and accordingly formulate strategy to maintain good market position. Moody’s investors’ service is one of the world’s most trusted and utilized services that provides the investors with the protection of integrity of credit vis-Ã  -vis the companies that it rates according to their financial and performance based fundamental strengths. It core business activities include credit rating, research and analysis providing a transparent system of market evaluation and upgrading the level of assessment of stocks with information based values. The most important aspect of Moody’s credit ratings is that it help the investors to analyse the credit risks for the securities and stocks of the company. Hence once a company gets a credit rating from the Moody, its credibility is established in the market. The higher the credit listing, the better the chances are for the company to maintain a low interest cost and high stake in credit-debt ratio. Moody’s approach to credit ratings, are based on the perspectives over a long period of time, within which the company would be not only be able to survive and succeed but also be able to meet its credit obligations. Therefore, it