rating on firm valuation. In particular, this paper estimates the effect of the credit rating on stock return and volatility … by employing cross-sectional regressions across listed firms in stock exchanges, some of which possess credit rating …(s) while others do not. The estimation results show that the credit rating reduces the volatility of stock return while it does …

English Abstract: Credit rating provides information predicting firm's future cash flows and risk under uncertainty and … hence represents its intrinsic value. Credit rating plays a role as certifier of credit risk of borrowing firm in financial … credit rating on volatility of debt financing and provides evidence that credit rating reduces the volatility of those while …