Asset Opaqueness, Split Bond Ratings, and Rating Migration

35 Pages Posted: 2 Jun 2005

See all articles by Miles Livingston

Miles Livingston

University of Florida - Department of Finance, Insurance and Real Estate

Andy Naranjo

University of Florida - Warrington College of Business Administration

Lei Zhou

Northern Illinois University - Department of Finance

Date Written: June 2005

Abstract

This paper finds that firms with large asset opaqueness problems are more likely to receive split bond ratings from Moody's and S&P rating agencies, split rated bonds and bond with more opaque assets are more likely to have rating changes in the future. These results imply a causal link between asset opaqueness, split ratings and rating changes.

Keywords: bond rating, split rating, asset opaqueness, rating migration, rating change

Suggested Citation

Livingston, Miles B. and Naranjo, Andy and Zhou, Lei, Asset Opaqueness, Split Bond Ratings, and Rating Migration (June 2005). Available at SSRN: https://ssrn.com/abstract=734324 or http://dx.doi.org/10.2139/ssrn.734324

Miles B. Livingston

University of Florida - Department of Finance, Insurance and Real Estate ( email )

P.O. Box 117168
Gainsville, FL 32611-7168
United States
352-392-4316 (Phone)
352-392-0301 (Fax)

Andy Naranjo

University of Florida - Warrington College of Business Administration ( email )

P.O. Box 117168
Gainesville, FL 32611-7168
United States
352-392-3781 (Phone)

Lei Zhou (Contact Author)

Northern Illinois University - Department of Finance ( email )

Wirtz Hall
DeKalb, IL 60115
United States
815-753-1115 (Phone)
815-753-0504 (Fax)

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