Is a Bond Rating Downgrade Bad News, Good News, or No News for Stockholders?
We examine the reaction of common stock returns to bond rating changes. While recent studies find a significant negative stock response to downgrades, we argue that this reaction should not be expected for all downgrades because: (1) some rating changes are anticipated by market participants and (2)...
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
1993
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| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/lkcsb_research/2199 https://ink.library.smu.edu.sg/context/lkcsb_research/article/3198/viewcontent/Bond_Rating_1993_pv.pdf |
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| Institution: | Singapore Management University |
| Language: | English |