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The impact of ratings and other information on the fluctuation of Polish stock indexes

Author

Listed:
  • Magdalena Adamczyk

    (Cracow University of Economics, College of Economics, Finance and Law)

Abstract

Information is a critical element in the functioning of financial markets. Credit rating agencies are one of the most important sources of information and their announcements are treated as an indicator of trust in a given entity. The rating itself, as well as information regarding a forecast rating, may lead to significant changes in investment decisions and, as a result, affect stock indexes. The purpose of the article is to identify the impact of ratings and other information on the fluctuation of Polish stock indexes. The subject of the study was a comparison of the announcement dates of rating agencies’ decisions and other information with the fluctuations of selected stock indexes of the Warsaw Stock Exchange in the years 2016–2018. The conducted research allowed to determine the relationship between the date of publication of the ratings and other information and the change in the values of the studied stock indexes..

Suggested Citation

  • Magdalena Adamczyk, 2020. "The impact of ratings and other information on the fluctuation of Polish stock indexes," Bank i Kredyt, Narodowy Bank Polski, vol. 51(3), pages 239-262.
    • Handle: RePEc:nbp:nbpbik:v:51:y:2020:i:3:p:239-262
    as

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    File URL: https://bankikredyt.nbp.pl/content/2020/03/BIK_03_2020_02.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    rating; information; stock indexes; perception; behavioural finance;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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