Clientele Change, Persistent Liquidity Shock, and Bond Return Reversals after Rating Downgrades

2009 ◽  
Author(s):  
Zhi Da ◽  
Pengjie Gao
Keyword(s):  
Bond Return ◽  
Liquidity Shock ◽  
Return Reversals ◽  
Rating Downgrades

Clientele Change, Liquidity Shock, and the Return on Financially Distressed Stocks

2010 ◽  
Vol 45 (1) ◽  
pp. 27-48 ◽  
Author(s):  
Zhi Da ◽  
Pengjie Gao
Keyword(s):  
Empirical Evidence ◽  
Default Risk ◽  
Abnormal Returns ◽  
Small Subset ◽  
Short Term ◽  
Financially Distressed ◽  
Liquidity Shock ◽  
Return Reversal ◽  
Return Reversals

AbstractWe show that the abnormal returns on high default risk stocks documented by Vassalou and Xing (2004) are driven by short-term return reversals rather than systematic default risk. These abnormal returns occur only during the month after portfolio formation and are concentrated in a small subset of stocks that had recently experienced large negative returns. Empirical evidence supports the view that the short-term return reversal arises from a liquidity shock triggered by a clientele change.

Downside Risk and Long-Horizon Stock Return Reversals

2012 ◽  
Author(s):  
Nikolaos Artavanis ◽  
Gregory B. Kadlec ◽  
Raman Kumar
Keyword(s):  
Stock Return ◽  
Downside Risk ◽  
Return Reversals

scholarly journals Efficiency Analysis of Government Subsidy and Performance Guarantee Policies in Relation to PPP Infrastructure Projects

2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Lei Shi ◽  
Yujia He ◽  
Masamitsu Onishi ◽  
Kiyoshi Kobayashi
Keyword(s):  
Government Subsidy ◽  
Performance Guarantee ◽  
Infrastructure Projects ◽  
Special Purpose Vehicle ◽  
Performance Guarantees ◽  
Sustainable Operation ◽  
Integrated Policy ◽  
The Government ◽  
And Performance ◽  
Liquidity Shock

Sustainable operation of public-private partnership (PPP) infrastructure projects that are characterized by considerable external benefits is of vital importance. However, a liquidity shock might trigger an inefficient liquidation of a project by the special purpose vehicle (SPV) and the bank, whose objectives are to maximize the profits generated by the project. This study argues that performance guarantee and subsidy policies implemented by the government play a role in encouraging socially efficient decision-making by the SPV and the bank to ensure the continuation of socially valuable projects. The results show that both government subsidy and performance guarantee policies are effective in avoiding the inefficient liquidation of PPP infrastructure projects when the external benefits are large and certain. However, a performance guarantee policy might lead to inefficient continuation when the external benefits of a project are uncertain. Finally, we discuss the possibility that an integrated policy combining performance guarantees and government subsidies improves the efficiency of a PPP infrastructure project.

Further Colombian ratings downgrades look likely

2021 ◽  
Keyword(s):  
Content Type ◽  
Rating Downgrades

Headline COLOMBIA: Further rating downgrades look likely

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