This master’s thesis has aimed to contribute and fill the gap in existing studies and research where there has been a lack of knowledge about the relationship between credit ratings and stock recommendations. The purpose of this study is to analyse whether credit ratings from credit rating agencies affect financial analysts’ recommendations, as well as the opposite, if financial analysts’ recommendations affect credit rating agencies' credit ratings. The thesis has used quantitative methods with both panel data regressions where credit rating has been the dependent variable, as well as logistic regressions where recommendation has been the dependent variable. The data set has been based on firms Moody’s has issued credit ratings to between the years 1994 and 2016. The thesis’ results show that both the credit ratings from credit rating agencies and recommendations from financial analysts do indeed affect each other. This concludes that the two-way mirror between credit ratings and recommendations does exist.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-130303 |
| Date | January 2024 |
| Creators | Nordin, Simon, Oom, Gustav |
| Publisher | Linnéuniversitetet, Institutionen för management (MAN) |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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