Market anticipation and the effect of bond rating changes on common stock prices
Article Abstract:
The effect of bond rating changes on stock prices was analyzed by considering market anticipation of bond rating revisions. Samples of industrial firms that experienced bond rating changes were taken and the effects of rating changes were measured. The degree of market anticipation of a bond rating change was measured by the amount of market information available. Results showed that abnormal changes in stock prices occurred when there was little information available about the firm, with the rating change itself conveying some information. However, when there was more information available, rating change had little or no effect on stock price.
Publication Name: Journal of Business Research
Subject: Business, general
ISSN: 0148-2963
Year: 1992
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The informativeness of price-level adjusted accounting disclosures
Article Abstract:
The variability of stock prices at the release of inflation-adjusted information disclosures related to Accounting Series Release No 190 is examined. It is widely believed that price variability when information is released is related to what the information reveals. Results from an analysis of different stock variability metris show that inflation-adjusted data required by SEC is related with increased stock returns variability. However, this finding is applicable only to medium and large firms.
Publication Name: Journal of Business Research
Subject: Business, general
ISSN: 0148-2963
Year: 1993
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Index and non-index stock price volatilities around the 1987 market crash
Article Abstract:
The volatility of a stock market is usually been attributed to short-term price pressure resulting from futures-based trading strategies. Intraday price volatility of stocks included in the Standard and Poor's 500 Index or Major Market Index were compared with the price volatility of non-index stocks in days which had price pressures similar to Oct 1987. Results indicate that price volatility for index stocks did not differ from price volatility of non-index stocks.
Publication Name: Journal of Business Research
Subject: Business, general
ISSN: 0148-2963
Year: 1993
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- Abstracts: Financial statement information and the pricing of earnings changes. Product pricing based on accounting costs
- Abstracts: Market manifestation of nonpublic information prior to mergers: the effect of ownership structure
- Abstracts: Faster new product development: investigating the effects of technology and characteristics of the project leader and team