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The effects of corporate name changes on firm information environment and earnings management

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  • Devos, Erik
  • Huang, Jianning
  • Zhou, Fuzhao

Abstract

We study how corporate name changes affect a firm's information environment and its earnings management. We show that the stock market reacts negatively to name changes. This effect is specifically pronounced for firms that have lower visibility. We also find that firms that change their names tend to have a relatively worse information environment. Finally, we show that earnings management is positively related to firm name changes.

Suggested Citation

  • Devos, Erik & Huang, Jianning & Zhou, Fuzhao, 2021. "The effects of corporate name changes on firm information environment and earnings management," International Review of Financial Analysis, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finana:v:77:y:2021:i:c:s1057521921001812
    DOI: 10.1016/j.irfa.2021.101849
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    More about this item

    Keywords

    Corporate name change; Information environment; Earnings management;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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