A Rose.Com By Any Other
Name
Mike Cooper, Orlin Dimitrov and P. Raghavendra Rau
Krannert Graduate School of Management, Purdue University,
West Lafayette, IN 47907-1310, USA
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 77% for the ten days
surrounding the announcement day. The effect does not
appear to be transitory; there is no evidence of a post
announcement 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.
This paper has been published in the Journal
of Finance.
It has been referenced in
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and has won the
- EFA Barclays Global Investor Award, 2000 for
the best paper at the Symposium at the EFA Meetings,
London 2000
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