This Finance Dissertation Examines The The Impact of the Stock Market on Bond Rating Changes - New Finance Dissertation Topics For Students. This MSc international finance research project looks at the impact that the downgrade of a company or government credit rating has on the price of its bond in the days prior to, during and immediately after the downgrade. Supposing that the downgrade information is taken as negative news, then a fall in the stock price would be the expected reaction. However, if we assume that the equity investors already have access to the CRAs information, then there would be no impact in the stock market. Despite this, some limited impact might be felt because bad news or downgrade has a way of affecting the market sentiments. In order to perform this analysis, this thesis used an event study technique that tried to identify the impact of the downgrade on a particular variable. From the analysis I found out that there were no statistically significant abnorm
https://www.study-aids.co.uk/finance/fin0043/