Corporate Name Changes: The Case of M&As within the S&P 500 Index
51 Pages Posted: 14 Dec 2020
Date Written: November 12, 2020
In this study, we examine the effect of name change on mergers and acquisitions (M&As) among S&P 500 companies from 1979 to 2017. We find a significant name change effect on the S&P 500 index change announcement, although information about the name change was public at the time of the M&A announcement. The annualized short-term abnormal return for the name change within a week is about 60%, and the 1-year buy and hold abnormal return for the name change is about 10%. We further estimate that the impact of price pressure on index trading is 0.34%.
Keywords: S&P 500 Index, Mergers & Acquisitions, Name Change
JEL Classification: G12, G14, G34
Suggested Citation: Suggested Citation