Title

The influence of standard and poor’s ranking changes on stock price performance

Document Type

Article

Publication Date

1-1-2002

Abstract

This study examines the impact of Standard and Poor’s ranking changes on stock prices. If the ranking changes are not fully anticipated, we should observe abnormal return around the memorandum date. We focus particularly on those stocks whose ranking changes are in leap rather than in step. A stock whose ranking change from star one to five, two to five, five to two, three to one, etc., should experience significant abnormal returns around the date of announcement. Using the traditional market model, the study finds statistically significant abnormal returns on the announcement and surrounding dates. © MCB UP Limited 2002.

Publication Name

Managerial Finance

Volume Number

28

First Page

19

Last Page

30

Issue Number

4

DOI

10.1108/03074350210767807

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