Do credit rating changes affect equity issuance/repurchase?
: case study of the US market

  • Raquel Guerreiro Laginha (Student)

Student thesis: Master's Thesis


This dissertation analyses the relation between credit rating changes and equity Issuanceor Repurchase. I consider two types of credit rating changes: Upgrades and Downgrades. To conduct this study the data used comprises the period between 1985 and 2016, in which Iassume a lag of one month for the data to be incorporated into credit rating changes. To assess the relation between Issuance and Repurchase, I use a set of control variables and assess them in light of three different models: Linear, PROBIT and LOGIT. The results suggest that firms react more to Upgrades than Downgrades. In the Speculative Grade sub-sample, I find weaker empirical evidence of this relation, especially within the Repurchase scenario.
Date of Award3 May 2022
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorMário Meira (Supervisor)


  • Credit rating
  • Upgrade
  • Downgrade
  • Equity
  • Repurchase


  • Mestrado em Finanças

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