We examine the stock market reaction to announcements of corporate name changes for
rms belonging to Korean chaebols. We find that chaebol-affiliated rms changing their
non-chaebol-name (a name not including the name of a chaebol) to a chaebol-name
(a name including the name of a chaebol) experience a positive stock price reaction
on the announcement date. Another noteworthy finding is that the firms also earn a
statistically significant excess return on the effective date of a name change, as well as
on the announcement date. The stock price reaction on the effective date is stronger
among stocks experiencing a larger increase in their investor base.
Keywords: Name changes; Valuation effects; Ineficient markets; Investor recognition hy-pothesis; Chaebol
[2013년 제 2차] Revealing the Family Name: Valuation Effects of Nam
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2013-06-05
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