Research On The Relationship Between The Frequency Of Active Renaming Of Listed Company's Stocks And The Excess Return Rate

Stock renaming behavior is a visible reflection about the adjustment of businesses or other aspects in the listed companies,which is a signal to send messages directly to investors.The phenomenon of stock abbreviations renaming has emerged in an endless stream in the current market environment,which has attracted the attention of scholars in various fields.Therefore,this paper studied the market reaction caused by the active renaming behavior of stocks and the difference in the effect of stock renaming behavior on the excess return.The research is divided into two parts.The first part selects the active rename change sample from 2012 to 2018,and divides it into low-frequency group and high-frequency group,then uses the event research method to analyze the influence of the excess return.The second part is based on the multiple regression model.To research the effect of excess return for low frequency sub-active name change stock and find the internal correlation.The results shown that all the samples showed a significant positive cumulative average excess return before the announcement period,and the stock price gradually returned to normal level after the reverse correction,indicating that the active renaming event has an advanced reaction in the short-term market and has the characteristics of overreaction and reverse revision;In the sub-sample,the low-frequency listed companies produced a significant positive price effect in the window period,while the high-frequency listed companies did not produce significant excess returns in the window period,and the excess returns were negative.In conclusion,the market effect caused by different frequency of stock renaming events is different.The more the renaming frequency,the smaller the market effect,and the lower frequency of active renaming behavior has a significant impact on the return rate of listed companies.