Abstract
This paper analyzes the credit rating markets in transition economies of Central and Eastern Europe and the former USSR, an important economic area and countries that are quickly developing into significant economic players. Using a sample of 969 credit rating announcements from 1998 to 2021, we examine the wealth effects of the credit rating announcements and compare the findings to the existing international evidence. We find that informativeness of rating announcements in transition economies decreases after the first enforcement of insider trading laws. We also find different market reaction to rating announcements in EU and non-EU countries. Our findings suggest that this region is still evolving and part of it still has characteristics of other emerging markets.
Original language | English |
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Article number | 101878 |
Journal | Journal of International Financial Markets, Institutions and Money |
Volume | 89 |
DOIs | |
State | Published - 1 Dec 2023 |
Keywords
- Bond rating announcements
- Information content
- Market efficiency
- Transition economies
ASJC Scopus subject areas
- Finance
- Economics and Econometrics