Financial Reporting and Municipal Bond Rating Changes.
Year: 1981
Type: article
Abstract: ABSTRACT: Municipal bond rating changes can have significant consequences for both borrowers and investors. Multivariate discriminant analysis (MDA) was used to examine whether financial ratios could discriminate between cities that had their ratings upgraded or downgraded from an A rating. In addition, both the upgraded and the downgraded groups of cities were matched, using a paired sample design with a control group to examine the predictive ability of fiscal information. Fiscal variables do appear to be associated with rating revisions, in addition, it appears that rating revisions are more closely associated with operating working capital flow than the "total flow of resources" statement generated by current generally accepted accounting principles (GAAP).
Source: The Accounting Review
DOI: 10.2308/tar-4481786
Author: K. K. Raman
Institution: The University of Texas at San Antonio
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2296879374