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Názvy společností a jejich vliv na výkonnost firem
[Corporate Names and Performance]

Author

Listed:
  • Jan Hanousek
  • Štěpán Jurajda

Abstract

We provide systematic evidence of the effect of alphabetical sorting on corporate performance based on over a decade of data covering seventeen EU countries in three European language families. We also measure the effects of using English words in a corporate name in a non-English-speaking country, of a corporate name containing a 'national' (patriotic) word, and of simple linguistic properties highlighted in the brand-name marketing literature. Using multiple measures of corporate performance, we find companies sorted low in the alphabet to be less successful in several European countries, particularly in services. 'National' words are associated with substantially higher sales growth in, e.g., Poland, Norway, France and Spain, while the use of English words in company names curbs (fosters) sales growth in Romance- (Slavic-) language countries.

Suggested Citation

  • Jan Hanousek & Štěpán Jurajda, 2018. "Názvy společností a jejich vliv na výkonnost firem [Corporate Names and Performance]," Politická ekonomie, Prague University of Economics and Business, vol. 2018(6), pages 671-688.
    • Handle: RePEc:prg:jnlpol:v:2018:y:2018:i:6:id:1218:p:671-688
    DOI: 10.18267/j.polek.1218
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    References listed on IDEAS

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    More about this item

    Keywords

    brand name; onomastics; order effects; alphabetical sorting;
    All these keywords.

    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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