Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/81584
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dc.contributor.authorPoon, WPHen_US
dc.contributor.authorShen, Jen_US
dc.date.accessioned2020-01-06T08:49:29Z-
dc.date.available2020-01-06T08:49:29Z-
dc.date.issued2020-
dc.identifier.citationReview of quantitative finance and accounting, published online 1 Jan 2020, p. 1-29, https://doi.org/10.1007/s11156-019-00868-7en_US
dc.identifier.issn0924-865Xen_US
dc.identifier.urihttp://hdl.handle.net/10397/81584-
dc.description.abstractUsing a comprehensive U.S. rating sample from S&P between 1981 and 2015, we examine the information content, responsiveness to credit risk and recovery efforts associated with rating outlooks. We find that rating outlooks (and credit watches) have important information content and are significantly associated with creditworthiness, measured by expected default frequency. More importantly, we show that by assigning negative outlooks, credit rating agencies induce some issuers to exert recovery efforts to prevent subsequent downgrades. The findings support the theoretical prediction of Boot et al. (Rev Financ Stud 19(1):81–118, 2006) that credit rating actions serve as a coordination mechanism between rating agencies and issuers.en_US
dc.description.sponsorshipDepartment of Building and Real Estateen_US
dc.language.isoenen_US
dc.publisherSpringeren_US
dc.relation.ispartofReview of quantitative finance and accountingen_US
dc.rights© Springer Science+Business Media, LLC, part of Springer Nature 2020en_US
dc.rightsThis is a pre-print of an article published in Review of Quantitative Finance and Accounting. The final authenticated version is available online at: https://doi.org/10.1007/s11156-019-00868-7en_US
dc.subjectRating outlooken_US
dc.subjectInformation contenten_US
dc.subjectCredit risken_US
dc.subjectRecovery efforten_US
dc.titleThe roles of rating outlooks : the predictor of creditworthiness and the monitor of recovery effortsen_US
dc.typeJournal/Magazine Articleen_US
dc.identifier.spage1en_US
dc.identifier.epage29en_US
dc.identifier.doi10.1007/s11156-019-00868-7en_US
dc.identifier.eissn1573-7179en_US
dc.description.validate202001 bcrcen_US
dc.description.oapreprint_postprinten_US
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