Dissertation Proposal

Do Credit order agencies have an impact on the UK trade: Have trust rating agencies lost credibility in the wake of the financial crisis? Objective: A belief rating agency is a firm that provides its opinion on the creditworthiness of an entity and the financial obligations (such as, bonds, preferred stock, and commercial paper) issued by an entity (http://www.sec.gov/answers/nrsro.htm). By bring to purposeher private and public information in regards to financial obligations to get to over a rating, rating agencies play a peak type in financial market places as they provide market emblazon to investors and to corporations as diverse companies, countries and securities can be compared with for each one some other in respect to the grading benchmark condition for an present of financial obligation. The market leaders of this manufacture are the US based companies, Standard and Poor, Moody and skunk which constitute 40%, 40% and 15% of the market respectively. Wh ilst various studies have examined the splendor of the publications and announcement given by these corporations, there is limited look that concentrates on the importee of the ratings given by these entities to non-US financial markets with the exception of (Barron et.al 1997).

This paper will examine the significance of rating ascensions and downgrades announcements, given by the 3 global market leaders, in coincidence to stock prices of corporations listed in the UKs FTSE century market. Therefore our get-go hypothesis is: H1: Does an announcement of a incorporated rating upgrade/downgrade have a author itative impact on the stock price of the fir! m in the UK market. To test this hypothesis, a standard event study methodology will be used with the focus of the study border the period 2002-2007. what is more to examine the significance of the 3 singular firms on the UK market, the rating upgrades and downgrades given by the entities will be treated some(prenominal) separately to see if one company has a well-made influence on the UK market than the...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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