Preferred Stock Returns, CreditWatch, and Preferred Stock Rating Changes.
This paper examines the announcement effects of CreditWatch placement and reratings upon a sample of preferred stock issues that were placed on CreditWatch and later rerated or affirmed by Standard & Poor's. Results indicate that CreditWatch provides information to market participants and may have reduced the surprise associated with subsequent reratings. CreditWatch placement may be an erroneous signal, however, since nearly 50 percent of the issues placed for negative reasons were not downgraded, but affirmed, upon removal from CreditWatch. Copyright 1990 by MIT Press.
Year of publication: |
1990
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Authors: | Wansley, James W ; Elayan, Fayez A ; Maris, Brian A |
Published in: |
The Financial Review. - Eastern Finance Association - EFA. - Vol. 25.1990, 2, p. 265-85
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Publisher: |
Eastern Finance Association - EFA |
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