The informativeness of credit watch placement on bond rating revision

• Main Authors: CHIRAPHOL, Chiyachantana N., MANITKAJORNKIT, Eakapat: TAECHAPIROONTONG
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: Credit watch placement; Bond rating revision; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6635
• Institution: Singapore Management University

This paper investigates stock price reaction to credit watch placement in bond rating revision process. We find that placing a credit watch causes significant abnormal returns in the company's stock. In other words, investors seem to concern more on the event of the company being put of a watch...