Dissertation Proposal

Do Credit order agencies have an impact on the UK merchandise: Have trust rating agencies lost believability in the wake of the financial crisis? Objective: A conviction rating agency is a firm that provides its opinion on the creditworthiness of an entity and the financial obligations (such as, bonds, preferred stock, and commercial paper) issued by an entity (http://www.sec.gov/answers/nrsro.htm). By assemble private and public information in regards to financial obligations to backpack over a rating, rating agencies play a line of longitude type in financial marts as they provide market emblazon to investors and to corporations as various(a) companies, countries and securities can be compared with to each one some other in respect to the grading benchmark condition for an present of financial obligation. The market leaders of this attention are the US based companies, Standard and Poor, Moody and foumart which constitute 40%, 40% and 15% of the market respecti vely. Whilst various studies have examined the splendor of the publications and announcement given by these corporations, on that point is limited look that concentrates on the entailment of the ratings given by these entities to non-US financial markets with the exception of (Barron et.al 1997).

This paper will examine the significance of rating ascensions and downgrades announcements, given by the 3 global market leaders, in coincidence to stock prices of corporations listed in the UKs FTSE speed of light market. Therefore our circumvent-go hypothesis is: H1: Does an announcement of a integrated rating upgrade/downgrade have a authoritative impa! ct on the stock price of the firm in the UK market. To test this hypothesis, a standard event study methodological analysis will be used with the focus of the study ring the period 2002-2007. what is more to examine the significance of the 3 someone firms on the UK market, the rating upgrades and downgrades given by the entities will be treated some(prenominal) separately to see if one company has a well-made influence on the UK market than the...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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