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Corporate Name Change and the Market Valuation of Firms: Evidence from an Emerging Market

Lookup NU author(s): Dr Saurabh BhattacharyaORCiD



This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).


Investors’ responses to a firm’s name change and the determinants oftheir response are scantly explored areas in the field of behavioral finance. Based on asample of 415 Indian firms from 2005 to 2014, this study suggests that investorsrespond positively to the announcement of firm name changes. Furthermore, the studyindicates that when firms do not indicate geographical specificity in the name and havea specific rather than generic name, then the firm will experience greater abnormalreturns. Also, when firm names are fluent and are associated with the owner’s familyname, again, abnormal returns generated are positive. Nevertheless, as a firm ages andinvestors gain more information about it, then abnormal returns due to name changedecrease.

Publication metadata

Author(s): Agnihotri A, Bhattacharya S

Publication type: Article

Publication status: Published

Journal: International Journal of the Economics of Business

Year: 2017

Volume: 24

Issue: 1

Pages: 73-90

Print publication date: 13/01/2017

Online publication date: 30/11/2016

Acceptance date: 30/11/2016

Date deposited: 14/02/2017

ISSN (print): 1357-1516

ISSN (electronic): 1466-1829

Publisher: Routledge


DOI: 10.1080/13571516.2016.1253186


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