Market reaction to stock name change announcement in India
by Timcy Sachdeva
International Journal of Public Sector Performance Management (IJPSPM), Vol. 6, No. 6, 2020

Abstract: Increasing global contest possesses managed firms' en-path for higher demand for distinctiveness. Variables that are most eligible to uphold competitive supremacy, lead to emergence of company's image. Companies adopt stock name change strategy with a view to achieve corporate image. Name change signals variety of information that impacts the capital market. The present paper investigates stock name change impact on the shareholders wealth of Indian listed companies during 2008-2015. Using event study methodology, the results of the study suggests that on the announcement day abnormal returns were found and around the announcement with insignificant negative abnormal return indicating disapproval of name change. In addition, the type of industry in which the company lies does not create any value to the shareholders due to corporate name change. Further, it is analysed stock name change has no impact on shareholders wealth.

Online publication date: Wed, 04-Nov-2020

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