Empirical Study On Rename Of Stock And Stock Market Value Based On Reputation Theory

In the domestic and foreign capital markets,the phenomenon of stock name change of listed companies widely exists.According to statistics,more than 30% of listed companies in the us capital market have a history of stock name change.In recent years,China’s listed companies have also witnessed a wave of stock name changes.In 2017,137 listed companies changed their names,compared with 35 five years ago.Tadelis(2003),a famous American scholar on reputation theory,found that when the social reputation of listed companies is low,listed companies are most likely to start from scratch and rebuild their social influence through stock name change.In real life,the significant litigation dispute often leads to poor reputation of listed companies,listed companies to test major lawsuits and the connection between the shares of listed companies change its name,this paper takes the listed companies to borrow money,guarantee action,for example,selected from 2000 to 2018 in the forms of the defendant during the 427 listed companies as research samples,empirical examines the social reputation losses and the correlation of shares of listed companies change its name,and the economic effect of stock change its name.The main conclusions of this paper are as follows :(1)during the period of loan and guarantee litigation,the stock price of listed companies dropped significantly,indicating that the litigation disputes of listed companies caused the social reputation loss of listed companies.(2)the greater the social reputation loss caused by the borrowing and guarantee litigation of the listed company,the greater the possibility of the stock name change of the listed company.(3)the greater the social reputation loss caused by the borrowing and guarantee litigation of the listed company,the greater the extent of the enterprise value reduction of the listed company.In addition,the stock name change of the listed company cannot alleviate the negative impact of reputation loss on enterprise value.(4)the social reputation loss caused by the borrowing and guarantee litigation of listed companies will have a negative impact on the company’s product market,credit market and capital market.The stock name change of listed companies can alleviate the impact of the company’s lawsuit on the capital market,but cannot alleviate the impact of the company’s lawsuit on the product market and credit market.The empirical results of this paper show that the name change of listed companies is a "trick" of market value management,which cannot fundamentally improve the financial performance of companies.Therefore,this paper puts forward the following suggestions :(1)for listed companies,they should recover social reputation loss from the perspective of improving product quality and optimizing management structure;(2)for government regulators,it is suggested to further enhance the disclosure of business information of listed companies to create a healthy and rational investment environment;(3)for investors,they should try to establish a correct investment concept and make a more reasonable analysis and prediction on the name change of listed companies.