Does the Change of Company Name Matter for the Investors? Evidence from Indonesia

Sutrisno, Bambang and Hanifah, Azimah (2019) Does the Change of Company Name Matter for the Investors? Evidence from Indonesia. ICAME 2018 Proceeding. pp. 36-41. ISSN 2352-5428

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Abstract

Changing the name of the company requires careful consideration and is not an easy thing. Companies need to assess the impact and benefits of changing company names. This study aims to examine the impact of company name changes on stock returns on the Indonesia Stock Exchange. This research uses the event study methodology. With a sample of 32 companies listed on the Indonesia Stock Exchange that changed their names in 2013-2017, the results show that there are significant abnormal returns on days -4, -2, +1, +3, and +5, but the abnormal returns are negative. The results also prove that there is no difference in abnormal stock returns in the days before and after the announcement of changes in company names. The findings suggest that the market does not react to information about changes in company names.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Economics and Business / Fakultas Ekonomi dan Bisnis > S1 Management / Manajemen
Depositing User:	Bambang Sutrisno
Date Deposited:	21 Apr 2021 03:47
Last Modified:	21 Apr 2021 03:47
URI:	http://repository.umj.ac.id/id/eprint/4713

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