TY - JOUR
T1 - Corporate name changes
T2 - Price reactions and long-run performance
AU - Kot, Hung Wan
N1 - Copyright:
Copyright 2011 Elsevier B.V., All rights reserved.
PY - 2011/4
Y1 - 2011/4
N2 - 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.
AB - 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.
KW - Corporate name change
KW - Hong Kong stock market
KW - Long-run performance
KW - Operating performance
UR - http://www.scopus.com/inward/record.url?scp=78650595037&partnerID=8YFLogxK
U2 - 10.1016/j.pacfin.2010.10.003
DO - 10.1016/j.pacfin.2010.10.003
M3 - Journal article
AN - SCOPUS:78650595037
SN - 0927-538X
VL - 19
SP - 230
EP - 244
JO - Pacific Basin Finance Journal
JF - Pacific Basin Finance Journal
IS - 2
ER -