Credit Rating Changes and Post-M&A Firm Value: Assessing the importance of credit ratings changes as a motive for successful M&A
This research shows the impact of credit rating change (thereafter CRC) announcements on the combined entities following mergers and acquisitions. In looking at the effect of CRC announcements on share prices, we measure the level of influence that a credit upgrade or downgrade has on the equity value of firms. Existing literature disputes the applicability of share price as a measure of value cre