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Does a Share Name Change Have an Impact on the Pricing Efficiency of the Share?

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  • Yue’e Long
  • Wunhong Su
  • Yufan Tan

Abstract

This study examines the association between the pricing efficiency of individual shares during the post-period and the pre-period of renames, substantive renames, and those with non-substantive renames. Based on a sample of 567 firms in the Chinese A-share market, this study finds that the pricing efficiency of individual shares is significantly higher during the post-period than during the pre-period of a renaming announcement. Moreover, the results are robust to controls. In addition, the results are consistent with the argument that the firms experiencing substantive renames are more inclined to involve the firm-specific information content. JEL classification: M41, G32, G12, G34, M21

Suggested Citation

  • Yue’e Long & Wunhong Su & Yufan Tan, 2023. "Does a Share Name Change Have an Impact on the Pricing Efficiency of the Share?," SAGE Open, , vol. 13(4), pages 21582440231, December.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231219071
    DOI: 10.1177/21582440231219071
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    More about this item

    Keywords

    renames; pricing efficiency of individual shares; R-squared; renaming announcements; propensity score matching;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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