Announcement Effects of Bond Rating Changes on Common Stock Prices
Description:
This dissertation examines the reaction of common stock prices to changes in bond ratings by Moody's Bond Service. The question is whether an announcement of a re-rating by Moody's is new information. There are only two studies of stock price reaction to bond changes and the results are conflicting. Pinches and Singleton (1978) [PS] concluded that any reaction comes well before the re-rating. Griffin and Sanvicente (1982) [GS] found that their portfolio test indicated that rating changes do con…
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Date:
December 1984
Creator:
Glascock, John L. (John Leslie)
Partner:
UNT Libraries