Title

The Influence of Standard and Poor's Ranking Changes on Stock Price Performance

Document Type

Article

Publication Date

2002

Abstract

Describes Standard and Poor’s (S&P: USA) star ranking system for firm performance and presents a study of the impact of ranking changes on share prices. Outlines previous research on the effect of ranking changes and examines the share prices for 70 days before and after S&P ranking change announcements 1993‐1995 to assess abnormal returns. Explains the methodology and presents the results, which show significant changes in abnormal returns around the announcement dates, especially where the change is “in leaps rather than in steps”.

Publication Name

Managerial Finance

Volume Number

28

First Page

19

Last Page

30

Issue Number

4

Publisher

Emerald Insights

DOI

https://doi.org/10.1108/03074350210767807