Corporate name changes: Price reactions and long-run performance

Hung Wan KOT*

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    29 Citations (Scopus)


    Stock price reactions and long-run performance after a corporate name change are investigated using a sample of Hong Kong listed companies spanning 1999 to 2008. Corporate name changes are classified into four types. Investors react positively around the announcement date to changes announced as being due to a merger or acquisition, a restructuring or a change in business type. Name changes to provide clarity or for reputational reasons generate no stock price reaction. No abnormal trading activity is detected around the announcement and in the post-event period. There is very weak evidence of a relationship between long-run abnormal stock returns, operating performance changes and corporate name changes. The results suggest that name changes have short-term stock price effects but no long-term relationship with stock price or operating performance.

    Original languageEnglish
    Pages (from-to)230-244
    Number of pages15
    JournalPacific Basin Finance Journal
    Issue number2
    Publication statusPublished - Apr 2011

    Scopus Subject Areas

    • Finance
    • Economics and Econometrics

    User-Defined Keywords

    • Corporate name change
    • Hong Kong stock market
    • Long-run performance
    • Operating performance


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