Browsing by Author "Laginha, Raquel Guerreiro"
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- Do credit rating changes affect equity issuance/repurchase? : case study of the US marketPublication . Laginha, Raquel Guerreiro; Meira, MárioThis dissertation analyses the relation between credit rating changes and equity Issuance or Repurchase. I consider two types of credit rating changes: Upgrades and Downgrades. To conduct this study the data used comprises the period between 1985 and 2016, in which I assume a lag of one month for the data to be incorporated into credit rating changes. To assess the relation between Issuance and Repurchase, I use a set of control variables and assess them in light of three different models: Linear, PROBIT and LOGIT. The results suggest that firms react more to Upgrades than Downgrades. In the Speculative Grade sub-sample, I find weaker empirical evidence of this relation, especially within the Repurchase scenario.