A Rose.Com by Any Other Name

23 Pages Posted: 17 Sep 2000  

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

Multiple version iconThere are 2 versions of this paper

Date Written: November 2000

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.

Suggested Citation

Cooper, Michael J. and Dimitrov, Orlin and Rau, P. Raghavendra, A Rose.Com by Any Other Name (November 2000). EFA 0701, EFMA 2000 Athens. Available at SSRN: https://ssrn.com/abstract=242376 or http://dx.doi.org/10.2139/ssrn.242376

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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