Abstract
We examine the stock market reaction to announcements of corporate name changes for fi rms belonging to Korean chaebols. We fi nd that chaebol-affiliated fi 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 fi rms also earn a statistically signifi cant 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.
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