Corporate Name Change and the Market Valuation of Firms: Evidence from an Emerging Market

Arpita Agnihotri, Saurabh Bhattacharya

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

Investors’ responses to a firm’s name change and the determinants of their response are scantly explored areas in the field of behavioral finance. Based on a sample of 415 Indian firms from 2005 to 2014, this study suggests that investors respond positively to the announcement of firm name changes. Furthermore, the study indicates that when firms do not indicate geographical specificity in the name and have a specific rather than generic name, then the firm will experience greater abnormal returns. Also, when firm names are fluent and are associated with the owner’s family name, again, abnormal returns generated are positive. Nevertheless, as a firm ages and investors gain more information about it, then abnormal returns due to name change decrease.

Original languageEnglish (US)
Pages (from-to)73-90
Number of pages18
JournalInternational Journal of the Economics of Business
Volume24
Issue number1
DOIs
StatePublished - Jan 2 2017

    Fingerprint

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting (miscellaneous)
  • Economics and Econometrics

Cite this