TY - JOUR
T1 - Bond Yields, Ratings, and Financial Information
T2 - Evidence from Public Utility Issues
AU - Reiter, Sara A.
AU - Ziebart, David A.
PY - 1991/2
Y1 - 1991/2
N2 - This study investigates the relative roles of bond ratings and financial information in the setting of bond yields. Structural equation modeling techniques are used to learn whether ratings determine yields or whether both ratings and yields are determined by a concurrent set of economic and financial factors. Tests of alternative structural model configurations provide evidence regarding the associations between bond ratings, financial information, and bond yields. Both ratings and financial information are found to play an important role in determining bond yields. In addition, yields are consistent with the higher rating in cases of split ratings.
AB - This study investigates the relative roles of bond ratings and financial information in the setting of bond yields. Structural equation modeling techniques are used to learn whether ratings determine yields or whether both ratings and yields are determined by a concurrent set of economic and financial factors. Tests of alternative structural model configurations provide evidence regarding the associations between bond ratings, financial information, and bond yields. Both ratings and financial information are found to play an important role in determining bond yields. In addition, yields are consistent with the higher rating in cases of split ratings.
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U2 - 10.1111/j.1540-6288.1991.tb00369.x
DO - 10.1111/j.1540-6288.1991.tb00369.x
M3 - Article
AN - SCOPUS:84987487405
VL - 26
SP - 45
EP - 73
IS - 1
ER -