An Analysis of the Information Content of Bond-Rating Changes: A Case of Differential Information
Description:
This dissertation examines the reaction of common stock prices to the announcement of changes in bond ratings by Moody's Bond Service, while having a control for differential information availability. The Institutional Brokers Estimate System (I/B/E/S) number of security analysts and coefficient of variation of earning per share (EPS) estimates are used as a proxy for information availability of the firms. Past studies differs in their conclusions as to whether the market has responded to annou…
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Date:
May 1991
Creator:
Pongspaibool, Nantaphol