UUM Electronic Theses and Dissertation
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Malaysia stock price reaction to company's name change: analysis and evidence

Lavenyaa, Tharmamurthy (2021) Malaysia stock price reaction to company's name change: analysis and evidence. Masters thesis, Universiti Utara Malaysia.

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Abstract

A corporate name is an identity and a medium of communication between the public and a company. It is also likely that corporate name change serves as a signal to convey favourable information about the management's strategy on the company's future direction. The purpose of this study is to investigate the influence of corporate name change announcements on the Malaysian stock market price. The study employs Market Model Event Study methodology. The sample period taken for the study is January 2015 to August 2021. A sample of 65 companies listed in Bursa Malaysia is selected as clean data to analyse the market's reaction to the announcements. An event window 120 days was identified as the window before the event date. At the same time, an event window of 60 days was identified after the event. The event date (t=0) refers to the first available official announcement available on the Bursa Malaysia website regarding the name change made by the company. The findings of this study indicate that corporate name changes have no impact on shareholder wealth. Investors in Malaysia are generally selective in accepting news on the corporate name change. It seems like only those perceived to benefit them in the future are accepted enthusiastically.

Item Type: Thesis (Masters)
Supervisor : Nordin, Norhafiza
Item ID: 10397
Uncontrolled Keywords: Name change, Event Study, Market Model, Stock Price
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Date Deposited: 09 Mar 2023 01:29
Last Modified: 09 Mar 2023 01:29
Department: School of Economics, Finance & Banking
Name: Nordin, Norhafiza
URI: https://etd.uum.edu.my/id/eprint/10397

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