Elisa Choy - Academia.edu (original) (raw)

Elisa Choy

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Research paper thumbnail of Effect of credit rating changes on Australian stock returns

Accounting & Finance, 2006

We study the impact credit rating revisions have on stock returns of Australian firms rated by St... more We study the impact credit rating revisions have on stock returns of Australian firms rated by Standard & Poor's and Moody's. Our evidence is consistent with that documented in the USA showing that only downgrades contain pricerelevant information. The reaction is most significant when the downgrade: (i) is unanticipated; (ii) is for an unregulated firm; and (iii) reduces the firm's rating by more than one category.

Research paper thumbnail of Effect of credit rating changes on Australian stock returns

Accounting & Finance, 2006

We study the impact credit rating revisions have on stock returns of Australian firms rated by St... more We study the impact credit rating revisions have on stock returns of Australian firms rated by Standard & Poor's and Moody's. Our evidence is consistent with that documented in the USA showing that only downgrades contain pricerelevant information. The reaction is most significant when the downgrade: (i) is unanticipated; (ii) is for an unregulated firm; and (iii) reduces the firm's rating by more than one category.

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