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Rating and capital structure: How do the signs affect the speed of adjustment?
Journal of International Financial Management & Accounting ( IF 2.808 ) Pub Date : 2019-07-03 , DOI: 10.1111/jifm.12106
Reyes Samaniego‐Medina 1 , Filippo di Pietro 2
Affiliation  

Standard and Poor's ratings can be modified by the addition of a plus (+) or minus (−) sign to show the relative standing within each major rating category. In this paper, we analyze the influence of these signs on the speed of leverage adjustment for listed European companies in the 2004–2014 period. Our results indicate that (a) when a qualification is accompanied by a minus sign, it adjusts more slowly than qualifications either with a plus sign or without a sign; (b) when a rating has a plus sign, the adjustment is slower than when it has no sign; and (c) when a qualification is BBB‐, the speed of its leverage adjustment is close to zero. These results suggest that companies with signs in their ratings decrease their speed of adjustment to the target leverage ratio. In addition, such companies are especially concerned about a credit rating downgrade when it implies a possible loss of the degree of investment (BBB‐).

中文翻译:

评级和资本结构:迹象如何影响调整速度?

可以通过添加加号(+)或减号(-)来显示每个主要等级类别中的相对地位,从而修改标准和较差等级。在本文中,我们分析了这些迹象对2004-2014年间欧洲上市公司杠杆调整速度的影响。我们的结果表明:(a)当一个资格证书带有减号时,它的调整速度比带有加号或没有符号的资格证书调整慢;(b)当评级有加号时,调整要慢于没有加号时;(c)当一个资格为BBB‐时,其杠杆调整的速度接近于零。这些结果表明,标有等级的公司会降低调整至目标杠杆比率的速度。此外,
更新日期:2019-07-03
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