Journal
JOURNAL OF FINANCE
Volume 56, Issue 6, Pages 2371-2388Publisher
BLACKWELL PUBLISHERS
DOI: 10.1111/0022-1082.00408
Keywords
-
Categories
Ask authors/readers for more resources
We document a striking positive stock price reaction to the announcement of corporate name changes to Internet-related dotcom names. This dotcom effect produces cumulative abnormal returns on the order of 74 percent for the 10 days surrounding the announcement day. The effect does not appear to be transitory; there is no evidence of a postannouncement negative drift. The announcement day effect is also similar across all firms, regardless of the firm's level of involvement with the Internet. A mere association with the Internet seems enough to provide a firm with a large and permanent value increase.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available