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Does the American stock market react differently to rating announcements during a crisis period? The case of the 2008 worldwide financial crisis
Joint Authors
Ghachem, Dursaf Azuz
Budriga, Abd al-Qadir
Mamoghli, Shukri
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2011, Issue 586-679 (31 Dec. 2011), pp.1-22, 22 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2011-12-31
Country of Publication
Egypt
No. of Pages
22
Main Subjects
Topics
Abstract AR
تعتبر وكالات التصنيف عاملا مهما في الأسواق المالية.
في الواقع، و تلعب إعلاناتهم دورا مهما في إمداد المعلوماتية و تأمين قرارات المستثمرين.
و مع ذلك، وضعت أحداث الأزمة الأخيرة اللوم على وكالات التصنيف لأنها فشلت في تحقيق واحد من دورها المركزي و هو خفض مستوى الشركات في الوقت المناسب.
الاضطرابات المالية العالمية لعام 2008 توفر سياقا فريدا لدراسة رد فعل السوق لإعلانات التصويت خلال الأزمة.
نستخدم الدراسة المقارنة الحدث، و الذي يقارن بين العوائد الغير طبيعية بعد إعلانات التصويت خلال فترة الأزمة لتلك التي تعلن في فترات الاستقرار.
تظهر النتائج أن هناك رد فعل مبالغ فيه على الأخبار السيئة و أما الأخبار الجيدة و المحايدة فلها تأثير ضئيل.
أخيرا، يتبين لنا تغييرا في المواقف تجاه الوكالات خلال الظروف المالية المتدهورة.
Abstract EN
Rating agencies seem to be an important actor on financial markets.
Indeed, their announcements have informational and securing role on investor’s decisions.
However, recent crisis’ occurrences put the blame on rating agencies for having failed in achieving one of their central roles : downgrading firms at a just time.
The global financial turmoil of 2008 offers a unique context to examine market reaction to rating announcements during a crisis.
We use a comparative event study, which compares abnormal returns following rating announcements during a crisis period to those during stable periods.
Results show that there is an overreaction to bad news and an insignificant impact of good and neutral news.
Lastly, we show a change in agencies attitude toward deteriorated financial conditions.
American Psychological Association (APA)
Ghachem, Dursaf Azuz& Budriga, Abd al-Qadir& Mamoghli, Shukri. 2011. Does the American stock market react differently to rating announcements during a crisis period? The case of the 2008 worldwide financial crisis. Economic Research Forum : Working Paper Series،Vol. 2011, no. 586-679, pp.1-22.
https://search.emarefa.net/detail/BIM-267176
Modern Language Association (MLA)
Ghachem, Dursaf Azuz…[et al.]. Does the American stock market react differently to rating announcements during a crisis period? The case of the 2008 worldwide financial crisis. Economic Research Forum : Working Paper Series No. 586-679 (2011), pp.1-22.
https://search.emarefa.net/detail/BIM-267176
American Medical Association (AMA)
Ghachem, Dursaf Azuz& Budriga, Abd al-Qadir& Mamoghli, Shukri. Does the American stock market react differently to rating announcements during a crisis period? The case of the 2008 worldwide financial crisis. Economic Research Forum : Working Paper Series. 2011. Vol. 2011, no. 586-679, pp.1-22.
https://search.emarefa.net/detail/BIM-267176
Data Type
Journal Articles
Language
English
Notes
Includes appendices : p. 15-22
Record ID
BIM-267176