Bank Rating Changes and Bank Stock Returns-Puzzling Evidence from the Emerging Markets /

This paper examines the performance of emerging market bank stocks around the time of rating changes by major international agencies. The data suggest that downgrades on average have followed periods of negative cumulative abnormal returns for banks, although upgrades have not followed periods of po...

תיאור מלא

מידע ביבליוגרפי
מחבר ראשי: Richards, Anthony
מחברים אחרים: Deddouche, David
פורמט: כתב-עת
שפה:English
יצא לאור: Washington, D.C. : International Monetary Fund, 1999.
סדרה:IMF Working Papers; Working Paper ; No. 1999/151
גישה מקוונת:Full text available on IMF
תיאור
סיכום:This paper examines the performance of emerging market bank stocks around the time of rating changes by major international agencies. The data suggest that downgrades on average have followed periods of negative cumulative abnormal returns for banks, although upgrades have not followed periods of positive returns. More important, stock prices either do not respond to rating changes or respond in the opposite direction to what would be expected if announcements conveyed value-relevant information. The paper concludes that there are limits to the extent that supervisors in emerging markets can rely on market participants to monitor the safety and soundness of banks.
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תיאור פיזי:1 online resource (28 pages)
פורמט:Mode of access: Internet
ISSN:1018-5941
גישה:Electronic access restricted to authorized BRAC University faculty, staff and students