Date of Creation
5-1-2017
Degree Type
Departmental Honors Thesis - Restricted Access
First Advisor
Professor Karen Teitel
Abstract
This paper analyzes the impact of the Dodd-Frank Wall Street Consumer Protection Act (Dodd-Frank) on the informativeness of corporate credit ratings changes as measured by stock returns. I find that the market reaction to credit rating upgrades increased and downgrades decreased significantly after Dodd-Frank. In addition, the association between credit rating changes and leading market returns increased for downgrades. The association did not change for upgrades. Together, these results suggest that the Dodd-Frank Wall Street Reform and Consumer Protection Act did not increase the information content or timeliness of credit ratings downgrades, but did increase the information content of upgrades without changing the timeliness.
Recommended Citation
Carlson, Marisa, "Dodd-Frank Wall Street Reform & Consumer Protection Act" (2017). Economics and Accounting Honors Theses. 7.
https://crossworks.holycross.edu/econ_honor/7