Journal article
Managerial ownership and stock price reaction to bond downgrades
Applied financial economics, v 3(4), pp 357-364
01 Dec 1993
Abstract
Research has documented that announcements of bond downgrades and the magnitude of managerial holdings provide independently information about the firm's value. This study explores the link between bond downgrade-induced abnormal returns and managerial ownership. Results show that the stock price reaction to announcements of bond downgrades is more negative for owner-controlled firms than for management-controlled firms. The difference is not explained by any performance differences of firms prior to the announcement of downgrades, but is associated with possible managerial entrenchment
Metrics
9 Record Views
3 citations in Scopus
Details
- Title
- Managerial ownership and stock price reaction to bond downgrades
- Creators
- P. C. Kumar - American UniversityGeorge P. Tsetsekos - Drexel University
- Publication Details
- Applied financial economics, v 3(4), pp 357-364
- Publisher
- Chapman & Hall
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Scopus ID
- 2-s2.0-33644849419
- Other Identifier
- 991021881514804721