How are the Firms’ Innovative Activities and Credit Rating Signals Received in the Market?

Firm innovativeness and financing capacity are critical signals to stakeholders as they key drivers of firm performance competitiveness indicate the firm's ability fund its operations growth initiatives. Based on signaling theory, this study investigates effect a creditworthiness examines effectiveness. Using Korean innovation data Korea Investors Service financial for nine years, findings that technological has negative impact credit ratings, while non-technological positive impact. Furthermore, ratings positively performance. The current contributes literature theory by exploring creditworthiness. provide insights managers how send monitor stakeholders.