Corporate Name Changes: The Case of M&As within the S&P 500 Index

51 Pages Posted: 14 Dec 2020

See all articles by Olivier Le Courtois

Olivier Le Courtois

EM Lyon (Ecole de Management de Lyon) - Department of Economics, Finance, Control

Xia Xu

ESSCA School of Management

Date Written: November 12, 2020

Abstract

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

Le Courtois, Olivier Arnaud and Xu, Xia, Corporate Name Changes: The Case of M&As within the S&P 500 Index (November 12, 2020). Available at SSRN: https://ssrn.com/abstract=3729147 or http://dx.doi.org/10.2139/ssrn.3729147

Olivier Arnaud Le Courtois

EM Lyon (Ecole de Management de Lyon) - Department of Economics, Finance, Control ( email )

23, av. Guy de Collongue
69134 Ecully Cedex
France

Xia Xu (Contact Author)

ESSCA School of Management ( email )

1 avenue Lakanal
Angers, 49000
France

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