What's in a name.com? The effects of '.com' name changes on stock prices and trading activity

Research output: Contribution to journalArticle

91 Scopus citations

Abstract

This paper uses a market signaling perspective to examine investor reactions to firm announcements of name changes to include '.com.' Firms that change their name as a purely cosmetic technique are contrasted to those that employ other strategic investments. Results show that announcements of '.com' name changes are associated with significant increases in stock prices and trading activity. Furthermore, the magnitude of investor reactions is significantly larger when name changes are accompanied by other strategics.

Original languageEnglish (US)
Pages (from-to)793-804
Number of pages12
JournalStrategic Management Journal
Volume22
Issue number8
DOIs
StatePublished - Aug 1 2001
Externally publishedYes

Keywords

  • Dot-com
  • Event study
  • Market signalling
  • Name changes
  • Trading volume

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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