Managerial actions in response to a market downturn: valuation effects of name changes in the dot.com decline
被引:46
作者:
Cooper, MJ
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机构:Purdue Univ, Krannert Sch Management, Dept Finance, W Lafayette, IN 47907 USA
Cooper, MJ
Khorana, A
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机构:Purdue Univ, Krannert Sch Management, Dept Finance, W Lafayette, IN 47907 USA
Khorana, A
Osobov, I
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机构:Purdue Univ, Krannert Sch Management, Dept Finance, W Lafayette, IN 47907 USA
Osobov, I
Patel, A
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机构:Purdue Univ, Krannert Sch Management, Dept Finance, W Lafayette, IN 47907 USA
Patel, A
Rau, PR
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机构:
Purdue Univ, Krannert Sch Management, Dept Finance, W Lafayette, IN 47907 USAPurdue Univ, Krannert Sch Management, Dept Finance, W Lafayette, IN 47907 USA
Rau, PR
[1
]
机构:
[1] Purdue Univ, Krannert Sch Management, Dept Finance, W Lafayette, IN 47907 USA
[2] Georgia Inst Technol, Coll Management, Atlanta, GA 30332 USA
[3] Wake Forest Univ, Babcock Grad Sch Management, Winston Salem, NC 27109 USA
name changes;
valuation effects;
inefficient markets;
Internet firms;
dot.com bubble;
D O I:
10.1016/j.jcorpfin.2004.02.005
中图分类号:
F8 [财政、金融];
学科分类号:
0202 ;
摘要:
We investigate stock price reactions to Internet-related name changes in a market downturn. In contrast to the Internet boom period during which there was a surge of dot.com additions, in the bust period, there is a dramatic reduction in the pace of dot.com additions accompanied by a rapid increase in dot.com name deletions. Following the Internet "crash" of mid-2000, investors react positively to name changes for firms that remove dot.com from their name. This dot.com deletion effect produces cumulative abnormal returns on the order of 64% for the 60 days surrounding the announcement day. Our results add support to a growing body of literature that documents that investors are potentially influenced by cosmetic effects and that managers rationally time corporate actions to take advantage of these biases. (C) 2005 Elsevier B.V. All rights reserved.