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The Effect of Commercial Paper Rating Changes and Credit‐Watch Placement on Common Stock Prices
Author(s) -
Elayan Fayez A.,
Maris Brian A.,
Young Philip J.
Publication year - 1996
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.1996.tb00868.x
Subject(s) - stock (firearms) , stock price , common stock , business , stock market , credit rating , econometrics , economics , monetary economics , actuarial science , engineering , mechanical engineering , paleontology , context (archaeology) , horse , series (stratigraphy) , biology
The common stock price response to the announcement by Standard and Poor of CreditWatch placement and commercial paper reratings is examined. Results indicate a negative stock price response to negative placements on the CreditWatch list and to commercial paper rating reductions. A cross‐sectional model is estimated to identify firm characteristics associated with the stock market response.