The independent impact of credit rating changes - the case of Moody's rating refinement on yield premiums

Article Abstract:

Moody's Investors Service's refinement of its credit rating system on Apr 26, 1982, the first in its 73-year rating history, had an independent impact on bond prices. This was gleaned from an analysis of the information content of the refinement, which revealed a statistically significant change in bond yields whose ratings were downgraded. The relationship between credit rating changes and bond yields highlights the important role played by credit rating agencies in financial markets, in this case providing information to investors.

Security brokers and dealers, Securities and Commodity Contracts Intermediation and Brokerage, Securities & Investment Svcs, Analysis, Management, Bonds, Bonds (Securities), Credit ratings, Investment services, Moody's Investors Service

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The information content of security analyses: evidence from Standard & Poor's common stock quality ranking changes

Article Abstract:

The existence of a 'Standard & Poor's Anomaly' is investigated. The study examines stock price reactions to the changes made by Standard & Poor's to the rankings of common stock quality to determine the information content of security analyses. The results, based on a study of 191 upgrades and 582 downgrades, provide little evidence to support the existence of a 'Standard & Poor's Anomaly.' Instead, findings seem to support the 'post-earnings announcement drift hypothesis.'

Investment Banking and Securities Dealing, Security and Commodity Services, Securities Services, Evaluation, Securities, Securities industry, Investment analysis, Securities analysis, Standard & Poor's Corp.

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Industry information transfers: the effect of information environment

Article Abstract:

The relationship between information environment proxies and within-industry security returns is investigated. The study focuses on the impact of the amount of information available to the public before a company makes its earnings announcement on the scope of information transfers. The results support earlier findings indicating a negative relationship between the level of pre-disclosure of public information and price reactions to earnings releases.

Stocks, Reports, Profits, Stock prices, Corporate profits

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