The impact of sovereign rating changes on equity markets: The Case of GCC countries

This study investigates how GCC stock markets react to a change in the domestic currency sovereign credit ratings. This paper makes use of an event study with an underlying market model. The sovereign ratings and stock market prices were retrieved from the Thomson Reuters DataStream database. In tot...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: AL BALUSHI, OMAR LASHKO (author)
منشور في: 2018
الموضوعات:
الوصول للمادة أونلاين:https://bspace.buid.ac.ae/handle/1234/1252
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author AL BALUSHI, OMAR LASHKO
author_facet AL BALUSHI, OMAR LASHKO
author_role author
dc.creator.none.fl_str_mv AL BALUSHI, OMAR LASHKO
dc.date.none.fl_str_mv 2018-12-09T06:52:52Z
2018-12-09T06:52:52Z
2018-06
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv 2016255219
https://bspace.buid.ac.ae/handle/1234/1252
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv The British University in Dubai (BUiD)
dc.subject.none.fl_str_mv sovereign rating changes
equity markets
GCC countries
GCC stock markets
dc.title.none.fl_str_mv The impact of sovereign rating changes on equity markets: The Case of GCC countries
dc.type.none.fl_str_mv Dissertation
description This study investigates how GCC stock markets react to a change in the domestic currency sovereign credit ratings. This paper makes use of an event study with an underlying market model. The sovereign ratings and stock market prices were retrieved from the Thomson Reuters DataStream database. In total, 83 rating events were tested, 39 of which are upgrades, 44 as downgrades. The period tested spans from 2002 to 2017. The results coincide with previous literature; concluding that GCC markets do react to sovereign rating changes, with stronger reactions in the case of downgrades. Furthermore, the results also showed that GCC stock markets are indifferent to whether the sovereign rating was of the short term or long term variety. Moreover, GCC stock markets are indifferent to which credit rating agency issued the sovereign rating. Finally, the results show that of the Saudi, Omani, Qatari, and Bahraini stock markets, the Qatari stock market is the most sensitive to a sovereign rating change, particularly in the case of downgrades.
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publisher.none.fl_str_mv The British University in Dubai (BUiD)
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spelling The impact of sovereign rating changes on equity markets: The Case of GCC countriesAL BALUSHI, OMAR LASHKOsovereign rating changesequity marketsGCC countriesGCC stock marketsThis study investigates how GCC stock markets react to a change in the domestic currency sovereign credit ratings. This paper makes use of an event study with an underlying market model. The sovereign ratings and stock market prices were retrieved from the Thomson Reuters DataStream database. In total, 83 rating events were tested, 39 of which are upgrades, 44 as downgrades. The period tested spans from 2002 to 2017. The results coincide with previous literature; concluding that GCC markets do react to sovereign rating changes, with stronger reactions in the case of downgrades. Furthermore, the results also showed that GCC stock markets are indifferent to whether the sovereign rating was of the short term or long term variety. Moreover, GCC stock markets are indifferent to which credit rating agency issued the sovereign rating. Finally, the results show that of the Saudi, Omani, Qatari, and Bahraini stock markets, the Qatari stock market is the most sensitive to a sovereign rating change, particularly in the case of downgrades.The British University in Dubai (BUiD)2018-12-09T06:52:52Z2018-12-09T06:52:52Z2018-06Dissertationapplication/pdf2016255219https://bspace.buid.ac.ae/handle/1234/1252enoai:bspace.buid.ac.ae:1234/12522021-09-14T12:31:19Z
spellingShingle The impact of sovereign rating changes on equity markets: The Case of GCC countries
AL BALUSHI, OMAR LASHKO
sovereign rating changes
equity markets
GCC countries
GCC stock markets
title The impact of sovereign rating changes on equity markets: The Case of GCC countries
title_full The impact of sovereign rating changes on equity markets: The Case of GCC countries
title_fullStr The impact of sovereign rating changes on equity markets: The Case of GCC countries
title_full_unstemmed The impact of sovereign rating changes on equity markets: The Case of GCC countries
title_short The impact of sovereign rating changes on equity markets: The Case of GCC countries
title_sort The impact of sovereign rating changes on equity markets: The Case of GCC countries
topic sovereign rating changes
equity markets
GCC countries
GCC stock markets
url https://bspace.buid.ac.ae/handle/1234/1252