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ERIC Number: ED310481
Record Type: Non-Journal
Publication Date: 1988
Pages: 25
Abstractor: N/A
Reference Count: N/A
ISBN: N/A
ISSN: N/A
A Study of the Predictability of School District Bond Ratings.
Vedra, Kenneth David
School district bond ratings, issued on request by Standard and Poor's Corporation or Moody's Investors Service, hold implications for school districts' financial management. Ultimately, the bond rating assigned is a factor affecting the total cost of the bond issuance, related to the principal and interest payments over the life of the debt. A study was designed to identify the relationships among (1) school district bond ratings given by Moody's; (2) various socioeconomic-demographic characteristics; (3) and educational organization and finance variables. The 33 school districts selected for the study were all districts receiving a general obligation bond rating in 1984 from Moody's and located within a standard Metropolitan Statistical Area in the Western region. Each of 19 independent variables was tested for simple correlation; a multiple regression equation was developed to predict Moody bond ratings. The findings indicate that four variables (assessed valuation, total bonded debt, overlapping debt, and fund balance) have a combined predictive value that is highly significant. Combining these four variables yields a strong positive correlation with Moody's bond ratings. Findings also show that socioeconomic-demographic variables (per capita income, median family income, and district population) are not significant in the prediction equation. Therefore, these variables do not discriminate in the determination of a district's bond rating. Other findings and implications are discussed at length. Six statistical tables are included. (MLH)
Publication Type: Dissertations/Theses - Doctoral Dissertations; Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A