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Procyclical Ratings and Market Reactions | RESEARCH COLLOQUIUM

Contributed by: Jennifer Keever
Published: Thursday, 12 October 2017 11:00 AM


Procyclical Ratings and Market Reactions

12:00 - 1:15 p.m., Thursday, November 2, 2017
Whitinger Building room 145, Hall of Fame Conference Room

RSVP before October 23

Presented by Kris Kemper
Assistant Professor of Finance

Procyclical Ratings and Market Reactions

We investigate stock price reactions to credit rating changes during competing economic environments. Prior research has shown that credit rating assignments differ during times of economic expansion and economic contraction. We investigate if equity prices adjust differently to changes in credit quality in different economic environments. Our results show that markets react more strongly to negative ratings news during times of economic contraction. When the economy is expanding, markets also overreact by pushing prices higher than they otherwise would during an economic downturn.

About Kris Kemper

Kris Kemper, Assistant Professor of Finance, received his Ph.D. in Finance from Oklahoma State University in 2011. His current research interests include capital structure, credit ratings, debt heterogeneity, and inflation hedging.

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Midterm Feedback Service Available

Contributed by: Kathleen Jacobi
Published: Sunday, 17 September 2017 9:00 AM
Why wait until after finals to receive student feedback? The Office of Educational Excellence can assist in gathering student feedback at midterm allowing you to make adjustments prior to the end of the semester. Our Midterm Feedback Service can be provided as a facilitated face-to-face session with your students or as an online survey.

Learn more.