Impacto dos ratings no custo de capital

  • André Maia Neto Cardoso (Student)

Student thesis: Master's Thesis

Abstract

This study investigates the impact of credit rating announcements on the stock market and, consequently, the impact on the cost of capital of the banking sector of Euro Zone. Hence, this study establishes and measures the relation between Credit Ratings, capital markets and the cost of capital in the banking sector. In addition, analyses the efficiency of the stock market and the differences between the impact of rating announcements in countries with and without recent foreign financial programs. This analysis complements various previous studies, having a recent time-space analysis which allows us to obtain more accurate conclusions. This study indicates a significant impact of Credit Rating Agencies in the stock markets in the European banking sector and provides information that proves that the stronger economies are more resistant to Credit Rating announcements. I analyze as well the impact of the stock market performance on the banks cost of capital, which is a central role in its operation, being capital-dependents companies. We were able to conclude that ratings announcements changes the cost of capital of the European banking sector.
Date of Award14 Jul 2015
Original languagePortuguese
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorPaulo Alves (Supervisor)

Keywords

  • Ratings
  • Credit ratings agencies
  • Cost of capital
  • Efficient market hypothesis
  • Stock markets
  • Bond markets
  • Default

Designation

  • Mestrado em Finanças

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