| In the developing of Chinese Stock Market, there are many factors affect the success and failure of Listed Companies, for example, management capacity of managers, the work efficiency of employees, products or service, whether these factors will be welcome by consumers. However, there are some non-told reasons. Whether the corporate name is good or bad will affect the company’s image and the investors’views on the company’s. For the listed companies, corporate name is the best signal to their businesses and performance. Public will approve a good corporate name. So, corporate name of the listed company should be one of the hidden assets.Corporate name change is one of the activities of the listed company, and it is an important part of the internal major economic activities. However, itself is only the inevitable result of these major economic activities. Before announcing the case of corporate name change, the causes of corporate name change had been announced many times. Besides, the event of changing the corporate name had been passed by general meeting of shareholders, and the event had been announced. So, the information of corporate name change had been known by investors, and been absorbed by stock market. So corporate name change is only the final confirmation of this information. Therefore, corporate name change is one typical case of "non-events". In my opinion, corporate name change should be seen as a kind of invisible assets of a company. Because it can affect the views of individual investors on the company. Thereby, it can affect the image of a company directly or indirectly. Accounting to the classical financial theory, rational investors cannot react to the "non-event" in the efficient market.Foreign scholars mainly analyze the short-term market value on corporate name change of companies in different foreign countries. In recent years, there are some scholars’studies the long-term market value about the event. Currently, there are seldom studies on the market value of the corporate name change in domestic. The existing literatures mainly study the short-term market effects generated by the corporate name change event. These literatures use small samples and shorter event study window, lacking persuasive.In my study, the paper uses eleven years efficiency sample of corporate name change from Jan.l,2000to Dec.31,2012in Chinese stock market to study the short-term and long-term market effects produced by corporate name change respectively. Through the next six parts, the paper will use the empirical investigation to study the influence caused by corporate name change on Chinese stock market and the investing behavior of investors. At the same time, I try to conform the non-validity of Chinese stock market.The first part is to inducing the environment of the corporate name change. On this part, the paper mainly says the research background, significance of the topic, ideas and structures of the paper, and the advantages and disadvantages of the paper. All above is to let you easily known the object of this study in this paper.The second part is to summarize the existing literatures, either domestic or foreign, and the theory. The paper summarizes many existing literatures from the short-term and long-term market effects, either domestic or foreign, on the market effects produced by the corporate name change event. Through analyzing the theory on corporate name change event, the paper has found its research respective that is to signalize the short-term and long-term market effects produced by corporate name change. The result is to explain the effectiveness of Chinese stock market. Furthermore, these literatures provide a theoretical basis for selecting the methods of this study. The paper explains the theory, such as market efficiency, over-reaction and limited attention. Those support my paper.The third part is to explain the samples, methodology and the hypothesis in this paper. First, the paper has elaborated the short-term and long-term samples of the corporate name change. Second, I explain the method of the paper. In this paper, different objects of study have used different study methods. For example, the analyses to the short-term market effects of the corporate name change event on the announcement day t=0, on the day t-1, and on the day t+1uses event study method; the analyses to the long-term market effects of the corporate name change event uses Buy-and-Hold model. The paper wants to study the investors’ abnormal returns after they buy the stocks changing name on the announcement day and they has hold a period of time. Through using different research methods to research the short-term or long-term market value, I wish the result of this study will provide a reference to investors. The last is the hypothesis. The paper uses two main samples respectively on short-term samples and long-term sample of the corporate name change to analyze the market effects. In analyzing the short-term market effects, according to the different results causing the corporate name change, such as mergers and acquisitions, asset restructuring, main business changes, changes in company’s reputation and others, the paper designs different hypothesizes. Moreover, according to the characteristic of companies and the event of corporate name change, this paper has done the further hypothesis on the short-term market effects caused by corporate name change, that is to say it classifies the samples to seven sub-samples, such as varying degrees corporate name change, corporate name change of different scale companies, different industries, corporate name change of growth and value companies, and younger and older companies. Those hypothesizes will let the structure of the paper more closely.The forth part is to analysis the result of empirical investigations. Busied on these hypothesizes, the paper has gotten the reasonable results.The results on short-term market effects of the corporate name change event show that in the announcement day of the corporate name change event, the whole sample gets the notable positive value. In the study window (-1,+1), the market gets positive CAR, and in the study window (+2,+20), the market gets negative CAR. The corporate name change event, caused by asset restructuring, main business changes and others, has gets notable and positive CAR in the study window (-1,+1), and gets notable and negative CAR in the study window (+2,+20). In the study window (-1,+1), corporate name change event of these companies products stronger positive market value, such the companies of absolutely change their stock name, big value companies, manufacture and service companies, companies listed in the Shenzhen stock market, high BW companies and companies listed a short term. The multiple regression analysis shows that the corporate name change event can transfer the information on the value of a company to the stock market. The results on the long-term market effects of the corporate name change event say after the announcement day of the corporate name change event, there is notable and continuous twelve months negative AAR. If investors sell the stocks they bought on the event announcement day on any given day after the announcement day, they can get more abnormal returns.The fifth part is the summery and recommendations. From the results of the study we know that, investors have "overconfidence" to the NCCs. Our stock market demonstrates the characteristics of "overreaction". In short, we have gotten the conclusion of the inefficiency of Chinese stock market. The paper says two recommendations, such as enhancing investor education, and investment strategy.Advantages of this paper are as the following lists. First, this paper uses larger event window and more samples to use the thinking of summering the short-term market effects and the long-term market effects of the corporate name change event to study the stock market effect when the corporate name change event happens. So, I can explain the case on efficiency of Chinese stock market. Second, in this study, I analysis the stock market causing by NCCs under the different results these causing our companies changing their stock name. The reason for this is the corporate name change event under different results may product different market effects. Moreover, this paper also anal sizes the long-term market effects of the corporate name change event. The most important is that none scholars study the long-term market effects of the corporate name change event in the Buy-and-Hold model.The following is the disadvantages of this paper. We know this paper only study the market effects of the corporate name change event on the announcement day. But after the NCCs whether the corporate name change event can also product notable market affect on the first using day of the new stock name? That is the next research.I have got the expected results via analyzing the short-term and long-term market value produced by corporate name change, so I wish the research can provide some help to investors. |
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