Image-related corporate name changes: Their effect upon firms’ stock prices

Abstract

We examine prior research on the effect of a corporate name change (CNC) related to a change in corporate image upon a firm's stock price. In doing so, we aim to answer three primary research questions. First, what is the effect of a CNC related to a change in corporate image, as opposed to a change in corporate entity (for example, acquisition) on a firm's stock price? Second, what is the effect of a major change versus a minor change to the corporate name on a firm's stock price? Third, what is the effect of a non-brand name altering CNC versus a brand name altering CNC on a firm's stock price? By applying the event study methodology to investigate these questions, we expand and refine the previous research on CNCs.