A Study On Short-term Market Reaction Of Listed Companies Renaming

As the symbol of the company,the name of stock is the image of the company which will be the first to be noticed by the market,its importance is self-evident.Every listed company will want to give itself a resounding stock name,because a good stock abbreviation will win the attention and recognition of the market,and it can be regarded as the company's intangible assets,many listed companies in the development process for a variety of reasons will also change their stock name.China A-Share market in 2000 due to the "internet" concept of big heat for the first time there is a large number of listed companies piled up to apply for active name change phenomenon,the rise of a group of new industries in 2014 and set off a second stock active renaming craze,when a total of 84 listed companies actively change the stock abbreviation.According to the analysis of the market reaction of domestic and foreign scholars to the stock name change events in different national securities market for many years,most of the results show that the share price of the renamed company near the date of the stock renaming announcement will fluctuate significantly.Therefore,this paper uses the stock name change data of listed companies in China's stock market,and analyzes whether there is still the price effect of stock renaming in the Chinese stock market today,and tries to study the influencing factors of the price effect of stock renaming based on the theory of overreaction,the theory of limited attention and overconfidence.Considering the richness and balance of the sample,this paper selects the company that actively renamed the Chinese A-Share market from 2014 to 2018 as a research sample,and uses the event research method to test whether there will be significant changes in the price of the renamed stock in several short-term windows after the date of the stock renaming announcement.That is,whether there will be an average excess rate of return and a cumulative excess rate of return.And the sample company according to the size of the company,the market and the size of the company to group,to observe whether the excess rate of return will be different.On this basis,in order to further investigate the impact factors of stock renaming effect,this paper introduces the nature of renaming,new stock abbreviation popular lexical,renaming nature x new stock referred to as popular lexical(interaction between the two)from the perspective of individual investors ' attention and institutional investors.As well as the institutional investor shareholding ratio for the explanatory variable for the full sample and sub-sample regression test.The study found that:(1)There was a significant positive excess rate of return after the date of the stock renaming announcement,that is,the Chinese a-Share market was overreacting to the event of the change of stock renaming;(2)The market reaction caused by the renaming announcements of different types of companies was not exactly the same,There are some differences between the average excess yield and the cumulative average excess yield of the three-component samples during the window period.(3)The concern of individual investors has a significant impact on the price effect of the announcement of stock renaming of listed companies,and there is a positive correlation between the two;(4)The shareholding ratio of institutional investors is negatively correlated with the accumulated excess yield It shows that institutional investors can effectively reduce the irrational fluctuation of stock market.Due to subjective and objective factors in the research process,this paper still has limitations and areas to be improved in the research content and Research methods:(1)This paper only studies the short-term window effect of stock renaming,and does not conduct in-depth research on the long-term market effect;(2)because this paper mainly studies the second renaming craze that began in 2014,covering a total of five years of data volume,through the screening of the removal of a total of 360 sample companies,the time span and the total number of samples can not meet a sufficiently rich standard,the results of the study may have a slight impact.