Effect of corporate name changes on value of companies
This study has three purposes, viz., ( 1) to identify the reasons for changing a corporate name and the types of expenditures incurred in the name change process; (2) to identify the perception of general investors towards the companies with regards to their name changes; and (3) to analyse...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/55594 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | This study has three purposes, viz., ( 1) to identify the reasons for changing a
corporate name and the types of expenditures incurred in the name change process; (2)
to identify the perception of general investors towards the companies with regards to
their name changes; and (3) to analyse how the stock market in Singapore reacts to
announcements of corporate name change.
Two research methods, v1z., questionnaire surveys (on general investors and
companies changing their names during the period January 1989 to June 1994) and event
study (using data collected from January 1989 to July 1994) have been applied in this
study.
This study revealed that corporate name changes would not affect the value of
companies. The stock prices would not react significantly to name change
announcements. The five functional characteristics (Distinctive, Relevant, Memorable,
Flexible and Positive) of corporate names were also found to have no significant impact
on investors' investment decisions. This study concludes that name change cannot be
used as an effective tool for market repositioning.
Due to our time and financial constraints, this study is restricted to companies
listed on the Stock Exchange of Singapore. |
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