The relation that may exist between rating announcements and bond spreads is unclear, despite the fact that many event studies have been dedicated to that problem. Several of them cast a doubt upon the utility and the function of credit rating agencies on the bond markets, which are usually...

Using a sample of 622 companies in 25 countries over a four-year period (2003ndash;2006), we investigate the translation risk hedging strategy of multinational companies. We find that a significant percentage of companies (47%) actively manage their translation risk. A credit rating...

This article analyses the effect of rating agencies' decisions on stock risks for European issuers concerning five kinds of events. Our approach is an extension of dummy variable regression event study methodology, using a GARCH(1,1) estimation to capture simultaneously the impact on both...