Purpose: This study aims to examine the information transfer effects of customers’ credit rating downgrades on supplier firms. Design/methodology/approach: In this study, the authors use suppliers’ cumulative abnormal returns around customers’ credit rating downgrade events to identify...

Diether, Lee, and Werner (2009) show that, in general, short sellers are contrarian in both contemporaneous and past returns and able to impressively predict future returns. This study examines these trading characteristics during both the trading day and the after-hours period. Interestingly,...