Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)

Does the Change of Company Name Matter for the Investors? Evidence from Indonesia

Authors
Bambang Sutrisno, Azimah Hanifah
Corresponding Author
Bambang Sutrisno
Available Online August 2019.
DOI
10.2991/icame-18.2019.4How to use a DOI?
Keywords
Change of company name, abnormal return, Indonesia stock exchange
Abstract

Changing the name of the company requires careful consideration and is not an easy thing. Companies need to assess the impact and benefits of changing company names. This study aims to examine the impact of company name changes on stock returns on the Indonesia Stock Exchange. This research uses the event study methodology. With a sample of 32 companies listed on the Indonesia Stock Exchange that changed their names in 2013-2017, the results show that there are significant abnormal returns on days -4, -2, +1, +3, and +5, but the abnormal returns are negative. The results also prove that there is no difference in abnormal stock returns in the days before and after the announcement of changes in company names. The findings suggest that the market does not react to information about changes in company names.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
August 2019
ISBN
978-94-6252-786-7
ISSN
2352-5428
DOI
10.2991/icame-18.2019.4How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Bambang Sutrisno
AU  - Azimah Hanifah
PY  - 2019/08
DA  - 2019/08
TI  - Does the Change of Company Name Matter for the Investors? Evidence from Indonesia
BT  - Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)
PB  - Atlantis Press
SP  - 36
EP  - 41
SN  - 2352-5428
UR  - https://doi.org/10.2991/icame-18.2019.4
DO  - 10.2991/icame-18.2019.4
ID  - Sutrisno2019/08
ER  -