Are there contagion or competition effects for non rated firms?The case of successive bond rating downgrades of Alcatel
AbstractThe object of this paper is to study the impact of successive changes in ratings of the leading firm on non rated firms belonging to the same stock index sector. Two courses of research are being mobilized regarding, on the one hand, the incidence of downgrading of ratings on the value of the firms and on the other hand, the contagion effects associated with the report of bad news. The analysis of the successive downgrading of the ratings of Alcatel, world leader in the telecommunications infrastructure, allows us to point out minor contagion effects among non rated French firms belonging to the same stock index sector.
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Bibliographic InfoPaper provided by Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations in its series Working Papers CREGO with number 1070603.
Length: 29 pages
Date of creation: Jun 2007
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Postal: Angèle Renaud, CREGO, 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France
Find related papers by JEL classification:
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
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