Abstract:
This paper proposes the mechanism that company names influence investors’ decisions and firm values, originally constructs an evaluation system of company names that reflects investors’ information processing experience by taking domestic investors’ thinking patterns and information processing habits into consideration, then evaluates the names of listed Chinese A shares firms during 1992 to 2009, and draws the following conclusions through empirical research. Short, fluent company names consisted of familiar words and carry auspiciousness are much more popular among investors. Hence these companies enjoy a larger investor base, see higher liquidity in their stocks, and get higher evaluations. Company names can not only affect the equilibrium stock prices and firm values directly through their influences on the demand curves of stocks, but also determine firm values indirectly via investor base and stock liquidity affected by them.
贾璐熙, 朱叶, 陈达飞. 公司名称、投资者认知与公司价值——基于公司名称评价指标体系的行为金融学研究[J]. 金融研究, 2016, 431(5): 173-190.
JIA Luxi, ZHU Ye, CHEN Dafei. Company Names, Investor Recognition, and Firm Value:A Behavioral Finance Investigation Based on the Evaluation Index System of Company Names. Journal of Financial Research, 2016, 431(5): 173-190.
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