Malaysia stock price reaction to company's name change: analysis and evidence

A corporate name is an identity and a medium of communication between the public and a company. It is also likely that corporate name change serves as a signal to convey favourable information about the management's strategy on the company's future direction. The purpose of this study is t...

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Main Author: Lavenyaa, Tharmamurthy
Format: Thesis
Language:eng
eng
Published: 2021
Subjects:
Online Access:https://etd.uum.edu.my/10397/1/depositpemission_s826678.pdf
https://etd.uum.edu.my/10397/2/s826678_01.pdf
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spelling my-uum-etd.103972023-03-09T01:29:41Z Malaysia stock price reaction to company's name change: analysis and evidence 2021 Lavenyaa, Tharmamurthy Nordin, Norhafiza School of Economics, Finance & Banking School of Economics, Finance & Banking HG Finance A corporate name is an identity and a medium of communication between the public and a company. It is also likely that corporate name change serves as a signal to convey favourable information about the management's strategy on the company's future direction. The purpose of this study is to investigate the influence of corporate name change announcements on the Malaysian stock market price. The study employs Market Model Event Study methodology. The sample period taken for the study is January 2015 to August 2021. A sample of 65 companies listed in Bursa Malaysia is selected as clean data to analyse the market's reaction to the announcements. An event window 120 days was identified as the window before the event date. At the same time, an event window of 60 days was identified after the event. The event date (t=0) refers to the first available official announcement available on the Bursa Malaysia website regarding the name change made by the company. The findings of this study indicate that corporate name changes have no impact on shareholder wealth. Investors in Malaysia are generally selective in accepting news on the corporate name change. It seems like only those perceived to benefit them in the future are accepted enthusiastically. 2021 Thesis https://etd.uum.edu.my/10397/ https://etd.uum.edu.my/10397/1/depositpemission_s826678.pdf text eng staffonly https://etd.uum.edu.my/10397/2/s826678_01.pdf text eng public other masters Universiti Utara Malaysia
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Nordin, Norhafiza
topic HG Finance
spellingShingle HG Finance
Lavenyaa, Tharmamurthy
Malaysia stock price reaction to company's name change: analysis and evidence
description A corporate name is an identity and a medium of communication between the public and a company. It is also likely that corporate name change serves as a signal to convey favourable information about the management's strategy on the company's future direction. The purpose of this study is to investigate the influence of corporate name change announcements on the Malaysian stock market price. The study employs Market Model Event Study methodology. The sample period taken for the study is January 2015 to August 2021. A sample of 65 companies listed in Bursa Malaysia is selected as clean data to analyse the market's reaction to the announcements. An event window 120 days was identified as the window before the event date. At the same time, an event window of 60 days was identified after the event. The event date (t=0) refers to the first available official announcement available on the Bursa Malaysia website regarding the name change made by the company. The findings of this study indicate that corporate name changes have no impact on shareholder wealth. Investors in Malaysia are generally selective in accepting news on the corporate name change. It seems like only those perceived to benefit them in the future are accepted enthusiastically.
format Thesis
qualification_name other
qualification_level Master's degree
author Lavenyaa, Tharmamurthy
author_facet Lavenyaa, Tharmamurthy
author_sort Lavenyaa, Tharmamurthy
title Malaysia stock price reaction to company's name change: analysis and evidence
title_short Malaysia stock price reaction to company's name change: analysis and evidence
title_full Malaysia stock price reaction to company's name change: analysis and evidence
title_fullStr Malaysia stock price reaction to company's name change: analysis and evidence
title_full_unstemmed Malaysia stock price reaction to company's name change: analysis and evidence
title_sort malaysia stock price reaction to company's name change: analysis and evidence
granting_institution Universiti Utara Malaysia
granting_department School of Economics, Finance & Banking
publishDate 2021
url https://etd.uum.edu.my/10397/1/depositpemission_s826678.pdf
https://etd.uum.edu.my/10397/2/s826678_01.pdf
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