| Summary: | 碩士 === 國立東華大學 === 企業管理學系 === 98 === This study uses data drawn from 1980 to 2008 for firms with firm-rename record and no missing financial data as our sample. Our sample is classified according to firm-renamed news recorded in Down Jones Factiva database; this includes the date and reason of the incident provided via the media. From this we examine the impact of different firm rename reason in the media has on corporate financial performance. We also organized our sample by type of rename to understand whether major or minor rename will affect the reaction of the investors. Our findings are summarized as follow, first, strategic rename group and major rename group both have better market performance in short term performance, and the situation is reversed for long term performance. Second, major rename group has better long-term buy-and-hold abnormal return. Third, operating performance varies in different groups, however group with “For image” reason did not have significance change in operating performance. Our results reveal renamed firms have positive impact on corporate financial performance. Also, this study provides evidence that media play an important role on firm-renamed event in short period.
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