Abstract

http://ssrn.com/abstract=254052
 
 

Citations



 


 



A Rose.com by Any Other Name


Michael J. Cooper


University of Utah - David Eccles School of Business

Orlin Dimitrov


Purdue University - Krannert School of Management

P. Raghavendra Rau


University of Cambridge


Journal of Finance Journal of Finance, Vol. 56, No. 6, pp. 2371-2388

Abstract:     
We document a striking positive stock price reaction to the announcement of corporate name changes to Internet related dotcom names. This dotcom effect produces cumulative abnormal returns on the order of 74% for the ten days surrounding the announcement day. The effect does not appear to be transitory; there is no evidence of a post announcement negative drift. The announcement day effect is also similar across all firms, regardless of the firm's level of involvement with the Internet. A mere association with the Internet seems enough to provide a firm with a large and permanent value increase.

Keywords: Inefficient markets, Investor irrationality, name changes

Accepted Paper Series





Not Available For Download

Date posted: December 16, 2000  

Suggested Citation

Cooper, Michael J. and Dimitrov, Orlin and Rau, P. Raghavendra, A Rose.com by Any Other Name. Journal of Finance Journal of Finance, Vol. 56, No. 6, pp. 2371-2388. Available at SSRN: http://ssrn.com/abstract=254052

Contact Information

Michael J. Cooper
University of Utah - David Eccles School of Business ( email )
1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States
Orlin Dimitrov
Purdue University - Krannert School of Management ( email )
1310 Krannert Building
West Lafayette, IN 47907-1310
United States
P. Raghavendra Rau (Contact Author)
University of Cambridge ( email )
Cambridge Judge Business School
Trumpington Street
Cambridge, Cambridgeshire CB21AG
United Kingdom
3103626793 (Phone)
HOME PAGE: http://www.raghurau.com/
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