While credit rating agencies use both forward-looking and historical information in evaluating a firm's credit risk, the role of forward-looking information in their rating decisions is not well understood. In this study, I examine the association between management earnings guidance news and future credit rating changes. While upward earnings guidance is not informative for credit rating changes, downward earnings guidance is significantly and positively associated with both the likelihood and speed of rating downgrades.
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- Partial requirement for: Ph.D., Arizona State University, 2015Note typethesis
- Includes bibliographical references (p. 42-45)Note typebibliography
- Field of study: Accountancy