Abstract
Banks provide several benefits that contribute to the growth of an emerging market economy, such as collecting savings from various sources and enabling borrowers to borrow these funds and invest in profitable sectors (De Ferro, 2013). Banks contribute to the growth of essential sectors of the economy and thereby influence a country's economy. Before making investment decisions, investors use credit ratings to determine the risk of investing in a specific country. This study aimed to define the extent to which sovereign credit rating (SCR) announcements influence the behaviour of bank share prices in the BRICS countries (Brazil, Russia, India, China and South Africa), which are emerging market countries. A quantitative research methodology was used to analyse data from January 2010 to December 2017 using an experimental research design. The data was collected from Bloomberg. The investigation carried out was an event study using the daily share price of banks, and the All Share Total Return Index of each country as the benchmark proxy, to determine whether abnormal returns (ARs) exist following an SCR announcement...
M.Com. (Investment Management)