Effect Of Name Changes Of The Listed Companies’ Stock

There has the second boom of renaming stock in 2014.Based on the boom,the article researches the overview,characteristics and short-term reaction of renaming the stock. Then the article use specific cases to analysis the short-term market reaction,the change in value and company’s risk after rename the stock purely.The first part of the article reviews the research already have.The second part explains the important meaning and generalize the characteristics of renamed stock in 2014;then analysis what reaction will be caused.The third part chooses Zhen Xingkeji(300101)and An Kongkeji(300370).Analysis the influence of changing name through three aspects:short-term market reaction,the value and risk of stock.The forth part summarizes the conclusions,generalizes the impact to the relevant parties and puts forward the suggestions.Through the study, we found the price of stock will rose sharply on the day of changing stock’s name,this make the companies obtain excess returns;and the market value not be enhanced.This is the theoretical significance.Then gives specific recommendations.This is the practical significance of this paper.