Abstract

http://ssrn.com/abstract=1002188
 
 

References (31)



 
 

Citations (2)



 


 



The Long-Term Market Performance of UK Companies Following Corporate Name Changes


Panagiotis Andrikopoulos


De Montfort University - Department of Accounting and Finance

Arief Daynes


University of Portsmouth - Business School

Paraskevas Pagas


University of Portsmouth

July 2007


Abstract:     
This study investigates the predictive power of corporate name changes on companies' subsequent long-term stock market performance. Using a total sample of 803 name change events associated with companies that have been officially listed in the UK market during the period 1987 to 2002, we give evidence that on average, markets perceive the change of the corporate name as a negative signal regarding companies' future. This post-event long-term market underperformance is robust for companies with both positive and negative pre-event market performances and asymmetric between pre-event "best" and "worst" market performers. Our results are also supportive to the claim that the market reacts only slowly to the information content of a name change announcement.

Number of Pages in PDF File: 46

Keywords: Name Change, Behavioural Finance, Market Performance, Underreaction Hypothesis

JEL Classification: G14, G32

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Date posted: July 22, 2007  

Suggested Citation

Andrikopoulos, Panagiotis and Daynes, Arief and Pagas, Paraskevas, The Long-Term Market Performance of UK Companies Following Corporate Name Changes (July 2007). Available at SSRN: http://ssrn.com/abstract=1002188 or http://dx.doi.org/10.2139/ssrn.1002188

Contact Information

Panagiotis Andrikopoulos (Contact Author)
De Montfort University - Department of Accounting and Finance ( email )
The Gateway
LE1 9BH
Leicester
United Kingdom
+44(0)116 250 6331 (Phone)
+44(0)116 251 7548 (Fax)
Arief Daynes
University of Portsmouth - Business School ( email )
Portsmouth, PO1 3DE
United Kingdom
+44 23 92844182 (Phone)
+44 23 92844037 (Fax)
HOME PAGE: http://www.port.ac.uk/departments/academic/ams/staff/title,1246,en.html
Paraskevas Pagas
University of Portsmouth ( email )
Department of Accounting and Finance
Portsmouth Business School
Portsmouth, Hants PO1 3DE
United Kingdom
+44(0)23 9284 4721 (Phone)
+44(0)23 9284 4037 (Fax)
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References:  31
Citations:  2

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