Cross-Sectional Regularities in the Response of Stock Prices to Bond Rating Changes
- 1 April 1989
- journal article
- review article
- Published by SAGE Publications in Journal of Accounting, Auditing & Finance
- Vol. 4 (4), 460-479
- https://doi.org/10.1177/0148558x8900400403
Abstract
This paper examines whether a firm's stock price response to the new information provided by a bond rating change is related to its net intangible assets. A variable used to measure net intangible assets, which is based on current cost data, is found to have significant explanatory power in cross-sectional regressions for the set of rating downgrades.Keywords
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